Reply to Roth IRAs for Kids

Forum Index » Money and Finances

Reply to "Roth IRAs for Kids"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]an amount equal to kid's w-2 income[/quote]

+1 This is the rule [/quote]

Op here. Explain to me like I’m 2. So each year you put in the amount they earn from summer jobs, etc. into the Roth? How long do you do this for? [/quote]

You can put as much as they earn on a W-2 upto $7,500 (I think; check) into a Roth. The contribution can be withdrawn any time and the earnings after age 59.5.

If you want to 'bend the rules' a bit, you can also contribute an additional (or maybe only this) $400 into their Roth. Kids can make upto $400 in miscellaneous income without paying payroll taxes.. Most kids do this through baby sitting or mowing neighbor's lawns, etc. and your kid may or may not. Don't think the IRS is going to be coming around checking on this.. It's small but adds up.

[/quote]

Don't do this. It's an easy audit flag so the IRS can look into all the income of high earners. It's their right, and even if you have nothing to hide, it'd a huge PITA[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics