Broker Check

First Roth IRA

June 08, 2023

Now that Summer is here, are your kids working? Don’t forget about the opportunity to open or contribute to a Roth IRA for them. Roth IRAs are a great tool to help young people get started on their path to financial independence. Roth IRAs are a way to build wealth tax-free and ensure tax-free distributions in the future.


Anyone who has earned income can open a Roth IRA if they meet the following criteria.

  • Single with Adjusted Gross Income limit of $138,000-$153,000
  • Married with Adjusted Gross Income limit of $218,000-$228,000
  • You can contribute up to a max of $6,500 with $1,000 addition catch up if you are over 50 years old.


Most first-time wage earnings are well within the income limit. However, they are only allowed to contribute up to the amount of what they have earned.

  • Example: If someone earns $2,500 during summer work, they can only contribute up to $2,500, not $6,500.


I would recommend anyone who has income and can qualify, should have a Roth IRA. Especially young adults who are just starting out.


If you know someone who is just starting to earn wages, call us for some strategies for opening a Roth IRA for them.


It is never too early to start on the road to financial independence.

Note: You may take nontaxable withdrawals from a Roth IRA if you are at least 59 ½ and the account has been held at least 5 years. Otherwise, earnings withdrawn may be subject to ordinary income tax and a 10% penalty. All investing involves risk including the potential for loss.

Stephen Moss is a Registered Representative offering Securities through UNITED PLANNERS FINANCIAL SERVICES, Member FINRA/SIPC.  Advisory Services are offered through Pegasus Financial Group.  Pegasus Financial Group and United Planners are not affiliated.

Confidential Information:  This message and any attachments contain information from United Planners Financial Services, which may be confidential and/or privileged and is intended for use only by the addressee(s) named on this transmission.  If you are not the intended recipient, or the employee or agent responsible for delivering the message to the intended recipient, you are notified that any review, copying, distribution or use of this transmission is strictly prohibited.  If you have received this transmission in error, please (i) notify the sender immediately by e-mail or by telephone and (ii) destroy all copies of this message.