401 for young adults
Hi. My kids are both 18 years old. Both work at Amazon warehouse. One is going to a community College the other is just getting work experience before he goes into the union with my husband. I want them to start a 401k or roth ira now. What do u recommend..where do I start? What company?
Terry Says
Well, YOU don’t start — THEY must do it! If they are offered a 40l(k) plan at work, that’s the place to start making regular automatic contributions by deduction from their paycheck.
They can only contribute to a retirement plan out of EARNED INCOME So the one who is still in college can’t start a retirement plan. When he or she does start earning money, you could gift money (up to $6,000 if they earn that much) and help them open a Roth IRA at Vanguard or Fidelity, assuming there isn’t a 40l(k) plan offered where they work.
