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Hello, I am 16 years old, and believe it or not, I want to open a retirement account. I do not plan to EVER withdraw funds from the account. I will only put in what I am sure I will not need. No education, house, or medical distributions will be taken.

I also believe, that my AGI will surpass $95,000 eventually.
So my question is:

Do I put my money in a Roth IRA because I am in the lowest tax bracket, and when I surpass $95,000 open a regular IRA and begin to contribute money to that?

Or do I open a regular IRA account now, and just keep depositing into that account?

All help is much appreciated...

Justin Lubell
JL@LubellNY.com
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Greetings, Justin, and welcome. You wrote:

<<Hello, I am 16 years old, and believe it or not, I want to open a retirement account. I do not plan to EVER withdraw funds from the account. I will only put in what I am sure I will not need. No education, house, or medical distributions will be taken.

I also believe, that my AGI will surpass $95,000 eventually.
So my question is:

Do I put my money in a Roth IRA because I am in the lowest tax bracket, and when I surpass $95,000 open a regular IRA and begin to contribute money to that?

Or do I open a regular IRA account now, and just keep depositing into that account?>>


I applaud your willingness to plan for your retirement at such a young age. You will not regret doing so when you finally get there.

Everything in a Roth may be taken free of income taxes eventually, but part of any distribution in a traditional IRA is always subject to income tax. For that reason and given your age, you should use a Roth IRA for your annual contributions until you are no longer able to do so because of your earnings. Just keep pumping up to $2K per year into that beastie until your AGI won't let you use it anymore.

Regards..Pixy
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I agree with Pixy. Also, by the time that $95,000 number comes for you, they will have raised the limit anyway, unless you are going to be the next Bill Gates.
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Roth for sure !
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