Will your child or grandchild be working this summer? If so, consider making a contribution to a Roth IRA on his/her behalf. The amount contributed canít exceed the childís 2016 earnings, up to a maximum of $5,500. The pay-in counts towards the $14,000 gift tax exclusion.
Roth tax benefits (subject to certain restrictions): Withdrawals made after age 59 Ĺ are nontaxable. Up to $10,000 of earnings can be taken out tax-free to buy a first home. And contributions (but not earnings) can be pulled out free of tax at any time.
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