Have you ever considered having your teen contribute to a ROTH IRA?
Dependent children who earn income from summer jobs will benefit the most by contributing to a ROTH IRA instead of a traditional IRA, since they usually don’t make enough to be subject to income tax and would get no tax savings by contributing to a traditional IRA.
Take a 17 year old teen who makes $2800 during the summer. If she contributes all of her earnings to a ROTH, assume 8% growth per year, by the age of 62, her $2800 contribution will have grown to $90,000 & will be available for withdrawal tax FREE.
Something to think about…