There is no age limit to opening up an IRA. Therefore, to start saving for your brand new baby, you can start a newborn IRA in their name, just as long as you meet the income requirements. If you are a parent, the government will allow you to establish a Roth IRA on behalf of your children.
It builds money for their retirement or college loans. Money put into a newborn IRA is tax free. When you place money into a newborn IRA, it is tax free and when you take it out, it is tax free. The only catch is that you are only able to remove it after five years- without being taxed that is. In case of an emergency or necessity, you are able to remove the funds. There are a couple tricky things to remember- your child has to be making the money that goes into the fund. A way to avoid any crazy child labor issues is to give your child a baby modeling gig which is completely legal and good for you and your baby. Even if your newborn never makes it into modeling, you will be able to avoid the loopholes and help your child earn a newborn IRA.
Click onto one of the resources below to help you start a newborn IRA today!
Other Newborn IRA Resources:
