Seed a Roth IRA for Your Grandkids

Help to start building your grandchild's nest egg early.

(Image credit: monkeybusinessimages)

As summer approaches, teenagers and college students are usually busy planning for summer jobs. And the income they earn gives grandparents an opportunity to help the youngsters build a nest egg by contributing to a Roth IRA on the grandkids' behalf.

Contributions to Roth IRAs give grandchildren "a huge head start," says Jennifer Failla, a certified financial planner with Strada Wealth Management, in Austin, Tex. Grandchildren can later tap the accounts for expenses such as buying a home or, ideally, use them to build tax-free retirement income.

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Mary Kane
Associate Editor, Kiplinger's Retirement Report
Mary Kane is a financial writer and editor who has specialized in covering fringe financial services, such as payday loans and prepaid debit cards. She has written or edited for Reuters, the Washington Post,, MSNBC, Scripps Media Center, and more. She also was an Alicia Patterson Fellow, focusing on consumer finance and financial literacy, and a national correspondent for Newhouse Newspapers in Washington, DC. She covered the subprime mortgage crisis for the pathbreaking online site The Washington Independent, and later served as its editor. She is a two-time winner of the Excellence in Financial Journalism Awards sponsored by the New York State Society of Certified Public Accountants. She also is an adjunct professor at Johns Hopkins University, where she teaches a course on journalism and publishing in the digital age. She came to Kiplinger in March 2017.