IRAs for Kids Video

IRAs for Kids

Tags: IRAs for Kids,investing,ira,ira for kids,kiplinger,retirement,tax tipsIRAs for Kids

0 Comments

Description

For all the kids who want to be rich when they grow up, and IRA can help put you on that track.

Transcript

I’m Kevin McCormally of Kiplinger’s with today’s tax tip. This tip is for teenagers who have summer jobs last year. Why not start an individual retirement account and stick part of your—shelter. You see if you already smell the money. Okay then try this. Ask your parents or grandparents to help find an IRA. The law says, you have to have earnings to have an IRA but it doesn’t save your own money, it has to go into the account. Here’s a technique that might work. Remind your folks that by claiming you as a tax dependent, they save $875.00 in taxes, if they’re in 25% bracket and then dazzle them with this fact, if they give that money to you for an IRA, you’ll grow them more than $40,000 over the 50 years until you retire. Assuming you have the 8% annual return and if you use a Roth IRA, it’ll all be tax free. You have until April 15th of this year to make an IRA contribution. For more tax tips to help lower your tax bill, visit the Kiplinger Tax Center at www.kiplinger.com/taxcenter.

Related Articles

IRAs for Kids

Ira Withdrawals

You can withdraw money from your IRA at any time, but there are sometimes penalties or income tax associated. The rules vary depending on whether you have a Roth or a traditional IRA and, as with a 401(k), the \'magic\' age is 59 ½....

Ira Checkbook

As an account holder of a Roth IRA retirement plan, you should be the one who is in control of it. To do so, you will need to use a checkbook IRA....

Roth Ira - Traditional Ira

Since the start of Roth IRA in 1998, it has become more and more popular. People are now switching from the traditional retirement plan specifically 401k plan into the Roth IRA plan....

Gold Ira

These are uncertain financial times. Major currencies are being devalued. Many traditional investments are becoming less secure as well as losing value. Many people are looking for safer investments. ......

Ira Deadlines Are Approaching

Many of us associate April with taxes. We should also associate it with IRAs, for April is the month with the deadlines for IRA contributions and mandatory IRA withdrawals. The deadline for your 2010......

The Golden IRA

This spring it might have been an investment fad, now it is serious investments strategy, buying gold in your IRA. This can be a well positioned move for many retirement accounts that are looking for security and stability in the coming years. As we hear the term "Second Stimulus" being loosely floated to the public, fears of inflation grasp every economist. In this scenario the economics lesson is simple, if you print too much money, it becomes devalued and tangible assets, like real estate and gold, will go up in value....

Hooray For the IRA!

A five-part primer about Individual Retirement Accounts -- and how they can help money grow for retirement. There's a very good chance that you could spend 20 or more years as a retiree. All the more reason you should try to contribute as much as you can to your workplace retirement plan....

Figuring Out Roth IRAs and Traditional IRAs

Deciding to invest in a retirement plan is the first and most important step, especially for a young engineer. Now that you have decided to start saving for your retirement, choosing the best option becomes easier. There are many considerations to finally come out with the one single best option for you. Saving for retirement is an important financial aspect of your present, which will help in securing your future. Hence it is all the more important to gather as much data as possible and spend some time researching before you decide on a plan....

IRA Deduction Rules For a Traditional IRA

When it comes to your Individual Retirement Account (IRA) there are certain things to consider like IRA withdrawal rules and the like. Here's a look at the IRA deduction....

New Threats to Your IRA

The IRS is cracking down on violations of the rules around IRAs pertaining to missing required payouts, early withdrawals, rollover goofs, excess contributions, and other picky rules....