Fortune Cookie allows small business owners to pay their children, grandchildren, nieces, and nephews and deposit that earned income into a Roth IRA account, which can help save for retirement, purchase a first home, or pay for educational expenses. Many families set up 529 savings plans for their kids’ future college costs without knowing that a Roth IRA may be a better option. A 529 can only be used for educational expenses, whereas a Roth IRA can be used to save for retirement, education, or a home purchase. Although many financial companies can assist you in opening a custodial Roth IRA, we love how easy Fidelity makes the whole process.
A little now, with a lot more added over time, creates a fortune!
The younger the child is when the funds are added, the more compound interest grows. Use this calculator to see how your child can benefit from early contributions to a Roth IRA.