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Here’s a thought if your child or grandchild has a job this summer. Consider contributing to a Roth IRA this year for him or her. You can put up to 100% of what the child earns in the ROTH IRA up to $5,000. The payment by you, the parent, qualifies as a gift and is subject to the annual $13,000 gift tax exclusion each year. Your generosity can help provide a huge nest egg for them at retirement. For example, a $5,000 yearly contribution to a 15 year old for a few summers until he or she goes to college can add up to well over $100,000 at their retirement. If the child keeps contributing each year, the balance can be over a million dollars!