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]

Then that's great. I didn't read it that way. A lot of people were describing earnings from things like babysitting, lawn mowing, etc. that wouldn't have employer-given 1099s or W2s and it sounded like they were just doubling whatever the kid put in without thinking about how much they actually make. [/quote]

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