Category Archives: IRA

Can children have IRAs? There is no minimum age for having an IRA. Due to the power of compound interest, saving tax-free in an IRA from childhood can provide a significant head start on financial security. Saving $6,500 in an IRA annually from age 14 through 24 and earning 7% per year provides over $1 million at age 61—even without contributing after age 24! 1.

What does the basic process entail? An income tax refund can be directly deposited to an IRA up to the annual contribution limit. The contribution limit was $6,000 ($7,000 for individuals age 50 or older) for 2022 and $6,500/$7,500 in 2023. It can also be split among multiple accounts. 1. It is tax time! Prepare your tax return for the year. 2. Determine the refund amount.