Mikeoxenormous
Diamond Member
To make contributions into a Roth IRA you have to have gainful employment that has an income. Paper routes dont count as gainful.Ah that is a good point. So even if you take your earnings from the S&P 500 index fund and put it into a retirement account, you still have to pay a capital gains tax. That is good to know. I did not know that. It’s very interesting.
I find it interesting that there’s an age minimum for these Roth IRA accounts. I don’t think that’s right. If somebody wants to start investing into a retirement account when they’re 15 years old doing a paper route and then take it out when they’re 35 maybe they should be able to do so? Although perhaps there’s arguments against this.
But I have a friend who has a Roth IRA account he invest into yearly. So I’m certainly gonna keep that in mind. I like the idea of an IRA because it’s tax-free. And it’s good to have something when you get older.