The Roth IRA Move That Could Turn A Teenager's Summer Job Into Six Figures
A teenager with a summer paycheck can open a custodial Roth IRA, and because contributions can come from a parent's pocket instead of the kid's, a few thousand dollars invested at 16 has 50 years to compound tax-free into a sum no later start can match.
A teenager can open a special savings account called a Roth IRA where money grows without taxes for decades. Starting young means small amounts have time to become much bigger, which is why starting early matters more than starting big.
Source: Benzinga · Read the original report at the publisher. Headline and figures shown for context; data may be delayed.
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