Reply to Does your teen have their own IRA or Roth?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]For those who are matching, remember that the total contributed to the Roth cannot exceed the kid's actual earnings that year. [/quote]

Yeah, [b]a lot of people are skirting the rules around ROTH and IRAs[/b]. The reason they are provided with the tax benefits they have is that you are supposed to be earning the money and putting a portion of your own money in. And you certainly shouldn't be putting in more than the kid is making, which it sounds like some of you are. I feel like these people should be setting up an annuity or something instead of cheating at a ROTH contribution. [/quote]

I don't think they are. Why do you think that? When people say "matching", i read that as fully funding up to 100% of earned income. Not x2 of earned income. [/quote]

This. No one is skirting the rules. Kid earns money. Kid can fund Roth IRA or anyone can fund it on his behalf in an amount equal to earnings up to the annual max. No one said anything about overfunding the account. [/quote]

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