<p>I'd like to give my S the money that my husband and I would otherwise spend for a civlian university (some of the money is tied up until grad school in a 501k account). Is it possible to start a Roth IRA based on cadet pay? Can we contribute to it in excess of the amt earned per year as a cadet? Should we consider opening a savings, money market or investment account instead or in addition to the Roth?</p>
<p>Just send it to me so I can finish paying off USC for son. :)</p>
<p>Belmont Park - 6th Race - #8 horse. ;)</p>
<p>“Is it possible to start a Roth IRA based on cadet pay?”</p>
<p>Yes, my son opened a Roth IRA account at the end of his Plebe year. You may want to contact a financial advisor to get the information you are looking for.</p>
<p>Always confirm any financial advice, including mine, with a qualified advisor or reference. </p>
<p>My understanding is that you can contribute to a Roth Account up to the max allowed for that year, even if your cadet has lower earnings than the max contribution limit ($5000 for 2009). The $5000 annual limit is adjusted each year based on inflation.</p>