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IRA for a child (lemmy.world)

submitted 1 year ago by [email protected] to c/[email protected]

18 comments fedilink hide all child comments

I've heard this is a good way to set your kid up for success and take advantage of compounding. One of the parts I always get caught up on when looking into it, is that your kid needs some form of taxable income, and whatever they contribute, you can match it.

If you have a child that is just a couple years old, how do you accomplish this? I can't just say I pay her $3000 a year for picking a book to read each night..or can I?

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[–] [email protected] 2 points 1 year ago (1 children)

My state gives me 10% back as tax refund for contributing up to $5000 a year to my kids 529.

[–] [email protected] 2 points 1 year ago* (last edited 1 year ago)

I need to look into that for mine. I live in Ca but I have a NY 529 (they have a solid performance history). So I wonder if I'd still qualify for any incentives