Anonymous
Post 07/10/2018 23:21     Subject: I am paying my teenager to watch my younger child this summer .... can I open a Roth?
Not worth it. You will be paying 15% to the taxman to.. what? open an account for your teen that he/she doesn't care about?
Anonymous
Post 07/10/2018 18:02     Subject: I am paying my teenager to watch my younger child this summer .... can I open a Roth?
Anonymous wrote:Won't you have to pay like payroll tax etc and do this all on the books...? I'm sure there's services that help with paying a nanny or something. use one of those.


We already do all of this for our housekeeper. We pay her on the books, withhold ss - file with DC DOES etc.

Part of this is about teaching a child to save AND helping jumpstart their retirement savings.
Anonymous
Post 07/10/2018 09:06     Subject: I am paying my teenager to watch my younger child this summer .... can I open a Roth?
Won't you have to pay like payroll tax etc and do this all on the books...? I'm sure there's services that help with paying a nanny or something. use one of those.
Anonymous
Post 07/09/2018 19:38     Subject: I am paying my teenager to watch my younger child this summer .... can I open a Roth?
https://www.kiplinger.com/article/saving/T046-C002-S001-roth-rules-for-kids.html
Anonymous
Post 07/09/2018 19:00     Subject: I am paying my teenager to watch my younger child this summer .... can I open a Roth?
Anonymous wrote:Not if the teen doesn’t hve taxable income. And you should be paying taxes on it if it is over a certain threshold. Can’t remember what that is.


Thanks - we will play with tax calculators to see if it is beneficial to claim it as taxable - I am guessing no.
Anonymous
Post 07/09/2018 18:05     Subject: I am paying my teenager to watch my younger child this summer .... can I open a Roth?
Not if the teen doesn’t hve taxable income. And you should be paying taxes on it if it is over a certain threshold. Can’t remember what that is.
Anonymous
Post 07/09/2018 18:02     Subject: I am paying my teenager to watch my younger child this summer .... can I open a Roth?
My understanding of tax law are that kids are not taxed on babysitting money

So can my teenager use his babysitting money to start a Roth IRA?