Roth IRA
I was thinking of getting a Roth IRA for my Daughter and Son in Law for a Christmas present. Do you have to get them for a certain amount? I can’t afford to spend too much but feel it’s a better gift for their future and then they can add to it or I could for future presents instead of stupid things that they don’t need. Also can I get this thru my bank? And is there a fee thru a bank. Thank you so much. I try to lisyen to you on WGN when I can. I learn so much , even for an old gal!
Terry Says
That’s a lovely thought — but it involves a lot. I’d rather you send me their address and I’ll send them a copy of my book so they can understand how and why to open an IRA.
Are they each working? Assuming they are under age 50, they can set aside as much as $7,000 this year –each in their own separate IRA.
That assumes they don’t have a retirement plan at work, or earn too much money.
The actual amount that you are allowed to contribute to a Roth IRA is based on your income. To be eligible to contribute the maximum amount in 2025, your modified adjusted gross income (MAGI) must be less than $150,000 if single or less than $236,000 if married and filing jointly.
Contributions begin phasing out above these amounts, and you can’t put any money into a Roth IRA once your income reaches $165,000 if you are a single filer or $246,000 if married and filing jointly in 2025.
I would suggest they go to www.Fidelity.com to open an IRA, and invest the money in teh S&P 500 stock index fund, assuming they are under age 50.
I’m serious about the book offer. Please write back to the email you get saying your question was answered. Give them the book, and a printout of this answer. Keep your money for your own retirement!
