Ask The Expert: Contributions

Asked by Penny 9/16/15

Can I start a Roth IRA for my new grandson ?

Answered by The Editor 9/17/15
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Unfortunately, no. At least not unless your new grandson is making money! To contribute to a Roth IRA, you need to have earned income. It’s fine if the money comes from somewhere else, but the person opening the Roth must have income of their own. When he becomes a teenager, a Roth might be a great option. In the meantime, you might want to consider a 529 to start saving for college. The early you start saving the better.