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Help Get Your amount of their taxable compensation for the year. And your
child doesn’t have to put all the money in — you and the child’s
Teen Started With grandparents can also contribute. In fact, you might want to

a Roth IRA “match” your child’s contributions up to the limit to provide an
incentive for them to continue investing in the Roth IRA. Not
Submitted by Ann Jacobs, Financial only will your matching contribution help build the Roth IRA’s
assets but it can also instill in your child’s mind the benefi t of
Advisor, Edward Jones - Denton
earning a match – which can prove valuable later on, when your
410-479-0271
child is in the workforce full time and has a chance to receive an
To be successful in most endeavors, it’s important to develop employer’s matching contributions in a 401(k) or similar plan.
good habits — and that’s certainly the case for investors. And

the earlier one develops these habits, the better. So, if you have Your child may well find a job at a local restaurant or shop,
teenagers who may be starting to work at part-time jobs, now as these businesses have experienced a shortage of workers
may be a great time to introduce them to investing — and one the past couple of years. But if you have a family business,
place to begin might be a Roth IRA. you can employ your teen to provide income that can go into
a Roth IRA. Furthermore, if the business is one parent’s sole
As you may know, a Roth IRA is a popular retirement savings proprietorship, or it’s a partnership in which each partner is the
vehicle — its earnings can grow federally tax-free, provided parent, the payments for a child younger than 18 are not subject
withdrawals aren’t taken until the investor is at least 59½ and to Social Security and Medicare taxes. As an employee, your
has had the account five or more years. But because a Roth child must perform reasonable tasks necessary for the business

IRA is funded with after-tax dollars, contributions can be and be paid reasonable wages — that is, wages comparable to
withdrawn at any time, penalty-free, to pay for any expenses what you’d pay a regular employee for the same work.
— including college. Roth IRA earnings can also be used to
help pay for college, although these withdrawals will be taxable. But wherever your child’s wages come from, using some of
However, if a child is the account owner, a lower tax bracket them to help fund a Roth IRA can be a good move. For one
will likely apply. thing, it gives you a chance to explain the value of putting time
on your side when you invest — simply put, the more years you
In 2023, up to $6,500 per year can go into your teenager’s Roth invest, the greater your chances of accumulating the resources
IRA, as long as the amount contributed doesn’t exceed the you need to meet your goals. And by helping your teen open
a Roth IRA, which holds stocks, mutual funds or virtually any
other type of security, you can discuss the diff erent risk/reward
> edwardjones.com | Member SIPC characteristics of various types of investments — the kind of
basic knowledge that all investors should have.

Compare our CD Rates Once your teen’s first paychecks start coming in, consider
Bank-issued, FDIC-insured bringing up the idea of opening a Roth IRA — you may well
be opening the door to a lifetime of consistent and informed
NPOUI . % APY* Minimum deposit investing.
$1000

. $1000 Financial Advisor. Edward Jones, Member SIPC
-ZFBS % APY* Minimum deposit This article was written by Edward Jones for use by your local Edward Jones
. $1000 Commercial
-year % APY* Minimum deposit
Call or visit your local financial advisor today. or Residential
Ann M Jacobs, AAMS®
Financial Advisor Call me for all
105 Franklin St your Real Estate
Denton, MD 21629-1207
410-479-0271 needs.
410-924-4807
* Annual Percentage Yield (APY) effective 7/20/2023. CDs offered by Edward Jones are bank

issued and FDIC-insured up to $250,000 (principal and interest accrued but not yet paid) per
depositor, per insured depository institution, for each account ownership category. Please
visit www.fdic.gov or contact your financial advisor for additional information. Subject to

availability and price change. CD values are subject to interest rate risk such that when
interest rates rise, the prices of CDs can decrease. If CDs are sold prior to maturity, the
investor can lose principal value. FDIC insurance does not cover losses in market value. Early
withdrawal may not be permitted. Yields quoted are net of all commissions. CDs require BENSON & MANGOLD
the distribution of interest and do not allow interest to compound. CDs off ered through 110 Market Street
Edward Jones are issued by banks and thrifts nationwide. All CDs sold by Edward Jones are
registered with the Depository Trust Corp. (DTC). Michael Shipley Denton, MD 21629
mshipley55@comcast.net 410-479-0777
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