Roth IRA for children ?
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Anonymous
| Hey, I'm wondering if anyone has opened Roth IRAs for their children? Seems like a great way to amass a small fortune your children/next generation. Have you thought about doing this and why have you either decided to or not decided to do this for your kids? |
Anonymous
| The child has to have earned income to set up a Roth IRA. My DS, 18, started one with summer income and plans to add to it every year with his summer earnings. |
Anonymous
| Your kids have to have earned income to be eligible for a Roth IRA (but yes, if my kid earned $1000 at a summer job I might consider offering to help him set up a Roth). |
Anonymous
| What others said. You can only have an IRA if you have income reported to the IRS and then can only put in up to the amount you earn (so a child earning $1000 at a summer job can only put in that 1000, not the max of 5500). |
Anonymous
| There are also big tax consequences for giving money to kids under age 14 so beware. |