One of the most meaningful gifts you can give a young person is a head start on their financial future—and few strategies are more impactful than encouraging them to contribute to a Roth IRA through a match savings program. It’s a simple yet powerful concept: you agree to match their contributions to a Roth IRA, dollar for dollar, up to the annual limit (currently $7,000 if under age 50). For example, if your child or grandchild contributes $3,500, you match it with another $3,500.

Why does this matter? Because starting early is one of the greatest advantages in building long-term wealth. The money invested in a Roth IRA grows tax-free, and when withdrawn in retirement, it can be completely tax-free as well. For a teenager or young adult, even a few thousand dollars invested now could grow into hundreds of thousands over several decades.

But this isn’t just about compounding returns—it’s about building habits. When young people earn money from a job and are incentivized to save a portion of it with a matching reward, they begin to learn discipline, delayed gratification, and the long-term value of saving. It turns a financial concept into a real-life lesson with skin in the game.

For grandparents and parents, it’s also a rewarding way to give while living. Instead of leaving money behind someday, you can witness your gift in action. You’re not just handing over a check—you’re encouraging responsibility and shaping a mindset that will benefit your loved ones for life.

There are other benefits as well:

• Tax-free growth: Roth IRAs are funded with after-tax dollars, so qualified withdrawals in retirement are entirely tax-free.

• Low Income Years = High Roth Value: Young adults typically earn less early in their careers, meaning they’re in a low tax bracket—an ideal time to contribute to a Roth IRA.

• Gifting strategy: Matching contributions is a creative and compliant way to gift money annually without triggering gift tax consequences. This also allows you to see the impact of your gift while you are living.

If your child or grandchild has earned income from a part-time job, internship, or side hustle, they’re likely eligible to contribute to a Roth IRA. As financial professionals, we can help confirm eligibility, set up the account, and create a structure for your match program. We can also help educate your loved ones on how investing works so they understand not just what they’re doing, but why it matters.

Want to explore this strategy or start setting it up? We’d love to help you turn this idea into action—and into a legacy of financial wisdom.

*Qualified Roth IRA distributions are not included in gross income.  Roth IRA distributions are generally considered “qualified” provided a Roth IRA has been open for more that five years and the owner has reached age 591/2 or meets other requirements.  Withdrawals may be subject to an IRA 10% additional tax for early or pre 591/2 distributions.