Does your teen have their own IRA or Roth?

[Anonymous]

No but they all have investment accounts at Fidelity. Money is in index funds.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Grandma gave her money to start a Roth when she turned 18.

that's sweet. did she have earned income that year?

She did. She had worked a summer job at an ice cream place so Grandma made a matching contribution as her 18th birthday gift. Basically, Grandma wrote a check and then we helped DD choose a Roth IRA and set up her account and deposit the money. A truly excellent 18th birthday gift.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I own my business. We put the kids on the payroll at the age of 6. They shredded and cleaned a bit. They contributed for about 6 years and then I stopped putting them on the payroll because they actually stopped doing the work. They invested in AAPL, TSLA and AKREX. Their Roth IRAs are both north of $80K now. When they go to college, and then graduate, they will appreciate the head start.... at least I hope they will.

LOL. Isn't that against child labor law? I know details, details...

SSA sent a form letter acknowledging the children were young, and asking what work they performed to earn their salaries. We wrote back that they shredded (they loved doing that), cleaned and did other light office work. We never heard another peep from SSA and CPS hasn't come knocking.

Also, the Commonwealth allows minor children of any age to work for their parents as long as it's not a dangerous job or a manufacturing job.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I own my business. We put the kids on the payroll at the age of 6. They shredded and cleaned a bit. They contributed for about 6 years and then I stopped putting them on the payroll because they actually stopped doing the work. They invested in AAPL, TSLA and AKREX. Their Roth IRAs are both north of $80K now. When they go to college, and then graduate, they will appreciate the head start.... at least I hope they will.

LOL. Isn't that against child labor law? I know details, details...

SSA sent a form letter acknowledging the children were young, and asking what work they performed to earn their salaries. We wrote back that they shredded (they loved doing that), cleaned and did other light office work. We never heard another peep from SSA and CPS hasn't come knocking.

Also, the Commonwealth allows minor children of any age to work for their parents as long as it's not a dangerous job or a manufacturing job.

This is BS — paying your 6 year old to shred? The fact that you got away with it doesn’t mean it’s legal or right.

[Anonymous]

My teens contribute their own money. We think that aspect is important. They have an allowance and we cover gas money so they are able to save most of their earnings.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I own my business. We put the kids on the payroll at the age of 6. They shredded and cleaned a bit. They contributed for about 6 years and then I stopped putting them on the payroll because they actually stopped doing the work. They invested in AAPL, TSLA and AKREX. Their Roth IRAs are both north of $80K now. When they go to college, and then graduate, they will appreciate the head start.... at least I hope they will.

LOL. Isn't that against child labor law? I know details, details...

SSA sent a form letter acknowledging the children were young, and asking what work they performed to earn their salaries. We wrote back that they shredded (they loved doing that), cleaned and did other light office work. We never heard another peep from SSA and CPS hasn't come knocking.

Also, the Commonwealth allows minor children of any age to work for their parents as long as it's not a dangerous job or a manufacturing job.

This is BS — paying your 6 year old to shred? The fact that you got away with it doesn’t mean it’s legal or right.

Nor is this a real job.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I own my business. We put the kids on the payroll at the age of 6. They shredded and cleaned a bit. They contributed for about 6 years and then I stopped putting them on the payroll because they actually stopped doing the work. They invested in AAPL, TSLA and AKREX. Their Roth IRAs are both north of $80K now. When they go to college, and then graduate, they will appreciate the head start.... at least I hope they will.

LOL. Isn't that against child labor law? I know details, details...

SSA sent a form letter acknowledging the children were young, and asking what work they performed to earn their salaries. We wrote back that they shredded (they loved doing that), cleaned and did other light office work. We never heard another peep from SSA and CPS hasn't come knocking.

Also, the Commonwealth allows minor children of any age to work for their parents as long as it's not a dangerous job or a manufacturing job.

This is BS — paying your 6 year old to shred? The fact that you got away with it doesn’t mean it’s legal or right.

Nor is this a real job.

If you get an add for a local company with their child or grandchild on it...you can bet they are paid a 6K modeling fee.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We started Roth IRAs for each kid at 15, as soon as they had earned income.

Same. We also funded them and let our teen keep the money he earned. I imagine we will continue to do so for a while.

Also same. We match every dollar they earn with a dollar in their IRA. They save/spend/share their income.

This is us, too.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Can someone walk me through this? When you say you are matching their income in a Roth, how does this work? I didn't think you can put more than their earnings in a Roth. So if the kid earns $3000 and puts in $2000, how can you match that since they would then have contributed more to the Roth then their taxable earnings? Or are they contributing $2000 and you the remaining $1000?

This pp. people are using the word “matching” loosely

My dd is earning 4,000 this summer from an internship. We are giving her 4,000 to put in her Roth and no more bc 4,000 is the extent of her earned income. We are fortunate to be able to do this and dd recognizes that as well. She also does not over-spend so we are not worried about her blowing the 4,000 that is in her savings account.

[Anonymous]

Laws are for poor people.

[Anonymous]

Anonymous wrote:

Anonymous wrote:When my kids' W-2s come around February, I contribute that exact amount into their Roths for the previous year (you can contribute up until April 15).
So in Feb 2023, kid's W-2 says they earned $2,947 in 2022. I contribute $2,947 to their Roth and check the box that says "contribution for 2022". I should be doing this as their pay checks come in but ....

There's no match whatsoever. Except maybe that I they earn $2,947, then I deposit a "matching" amount. Kids keep their money for college spending money or other things they're saving for.

People with money utilize every advantage.