I am thinking of starting my 18 year old children with a small IRA. They both are in college and have part time jobs earning about $3k per year. They also both have small investment accounts that we started with about $3500 each in them. So I was thinking of starting them off with a small IRA (about $500 per year) to get their retirement planning going early. I am considering going with a Roth IRA mainly because:- their income level is so low, there is no tax benefit with a Traditional IRA- The Roth is tax free at withdrawal time, when they will likely have a higher tax liability- Funds can be withdrawn from a Roth IRA for home purchase if needed- The ROTH IRA is more flexible than a traditional IRA in many other ways.Any thoughts or comments on this?It seems like a way to get them going towards a retirement plan, without easy access to the money (as in the investment account) except for a home purchase. In other words they can't simply pull the money out and buy a something :).Thanks
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