The Motley Fool Discussion Boards
Investing/Strategies / Retirement Investing
|Subject: Re: IRA's for Kids||Date: 12/27/2000 10:02 PM|
|Author: rjm1||Number: 26813 of 76882|
took the plunge and opened a custodial Roth IRA at Schwab for my 14 year old this week. My daughter actually
does have earned income (baby sitting, tutoring and cleaning house)though it's not well documented. My accountant
feels there will be no IRS problem with this situation. Have any Fools out there actually opened IRA's for their kids and
did you have any unexpected problems, IRS or otherwise? Any response would be greatly appreciated.
Just document what she earned and file an income tax return. She is self employeed. Look at form SE for the 1040 if she earned more than $400.00. This is where she learns about social security and medicare taxes.
You should have no problems and this is the way to go.
|Copyright 1996-2015 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|