Roth IRA for young adult and senior
I advised my 30 yo daughter to get a Roth IRA at Fidelity as you advised on WGN. She signed up for an account online , but how does she go about investing in the S & P 500 Index fund that you recommend?
I have an IRA at Fideltiy–I am 70 but still working. Would it be worth it for me to get a Roth also?
thank you!
Terry Says
Sure, if you don’t need the money now, you can open a Roth IRA with income from working — as long as you don’t go over the qualifying income limits. You can contribute up to $7,500 from earned income –if your Modified Adjusted Gross income is below $144,000. (Ask Fidelity to help you calculate your MAGA if you are close to the limits.) All the money will grow tax free –with no required minimum distributions. Be sure to name a beneficiary who will get the money if you die before withdrawing it.
Good for you for suggesting your daughter open a Roth IRA — assuming she has income from work. Her annual contribution limit (under age 50) is $6500. When she opened the account at Fidelity, they surely asked her when/how she wanted to make her contribution. And she surely set up online access, and linked to her checking account. If not, she should go back and do this. Or print out the contribution forms from their website, and mail a check with her account number on it. When she makes the contribution, they’ll ask “which fund” she wants to invest in. That’s where she specifies the S&P 500 stock index fund.
