Can You Open A Roth For Your Child or Grandchild?

Parents will often ask us: “What type of account can I setup for my kids that will help them to get a head start financially in life”?” One of the most powerful wealth building tools that you can setup for your children is a Roth IRA because all of accumulation between now and when they withdrawal it in retirement will be all tax free. If your child has $10,000 in their Roth IRA today, assuming they never make another deposit to the account, and it earns 8% per year, 40 years from now, the account balance would be $217,000.

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