MONEYTALK with Al Suffrin
Can I open an IRA for my children?
What exactly is an IRA? And could I start one for my 5-year-old daughter? - Jump Start in Des Allemands Dear Jump Start: The acronym IRA stands for “Individual Retirement Account,” and an IRA is a great way to save for retirement. There are two types of IRA accounts.
Dear Jump Start: The acronym IRA stands for “Individual Retirement Account,” and an IRA is a great way to save for retirement. There are two types of IRA accounts.
The first is the old-fashioned deductible IRA, which lets you put aside $4,000 in pre-tax dollars and $5,000 if you are 50 years or older.
The earnings from your IRA investments aren’t taxed until you start withdrawing the money during retirement.
However, you can’t touch the money without penalties before age 59½.
The other choice is the Roth IRA. The Roth IRA allows you to put in up to $4,000 in after-tax dollars and $5,000 if you are 50 years or older.
Earnings from your Roth IRA are tax-free if the money stays in the account for at least 5 years and is withdrawn after age 59½.
The Roth IRA is attractive because earnings are tax-free. The deductible IRA has the advantage if using pre-tax dollars to fund the retirement account.
To fund an IRA, the person who owns the account must have earned income.
Earned income is from wages, salary, self-employment, etc. It is not from interest, dividends, rents, etc.
Therefore, you or someone would have to hire and pay your daughter for her to contribute to an IRA account.
The pay she would receive would have to be commensurate with the services she provides - therefore, you will be limited to what a 5-year-old could do for an employer.
Jill Young wasn't looking for another pet when she heard Voodoo the one-eyed black...
After serving 41 years in prison for the 1974 shooting death of Timothy Weber, Gary...
Destrehan’s Jared Montz raised his hands to the sky as his teammates exploded out...
Kalia Gardner is joyfully hopping, running in circles around her brother and...
"Take your [clothes] off and I can please you. You have no idea what I can do,"...
Hahnville hadn’t forgotten the past two years of postseason play each resulting in...
Today's Car Care is the name people trust when it comes to outstanding tires and automotive service in the River Region and beyond.
Tigers move on in playoffs after 2-1 win over Chapelle - 511 views
A low-scoring, one-run game with a season on the line brings a lot of pressure with it, but Hahnville’s Karly Taranto is alright with that.