Since minors cannot legally open brokerage accounts, a parent or guardian must open a .
Contributions are made with "after-tax" dollars. Since teens usually fall into the lowest tax bracket, they pay little to no tax now. solo teen ira
If the teen is self-employed (babysitting), keep a simple log of dates, jobs, and payments in case of an IRS audit. Since minors cannot legally open brokerage accounts, a
Fidelity, Charles Schwab, and Vanguard are popular choices with $0 account minimums. keep a simple log of dates
They can contribute 100% of their earnings up to the annual limit ($7,000 for 2024/2025). 💰 Roth vs. Traditional: Why Roth Wins