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|Subject: Re: IRAs for under 18||Date: 6/6/1998 1:10 AM|
|Author: KATinChicagoland||Number: 3605 of 73937|
I think the technically correct answer is that if a teen earns money for work performed for persons other than parents, the money is taxable and therefore could form the basis for a contribution to a Roth IRA. And I agree entirely with Pixy's judgment that unless the child has W-2 income, you're likely to have more problems than benefits if you take this approach.
Pixy mentioned Money Magazine. If I recall, they had an article about kiddie IRAs, but I don't think they made the suggestion that a five-year-old could have one based on household chores. That boner appeared in Mutual Funds Magazine (April issue).
Kaye Thomas, author
Fairmark Press Tax Guide for Investors
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