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Financial Planning / Tax Strategies
|Subject: Re: Children with wages||Date: 3/16/2013 3:47 PM|
|Author: 2gifts||Number: 118069 of 122577|
have two 15 year old children that entered the work force last year.
They received W-2 wage summaries for 2012:
One earned $222.93
The other earned $1580
Just an additional suggestion. You might want to suggest to them that they put something into a Roth IRA. My kids always did that with earnings, and it worked out well. I wanted them to max it all out, so I used to match their contributions in the Roth so that they could save half, and have half for spending, but with my matching, they were able to save 100% of their income in a Roth.
If you think about it, a Roth is the perfect savings vehicle for them since the dollars going in are after-tax dollars, but they don't make enough to pay any tax at all, and everything coming out on the other side is also not subject to tax, under today's tax rules.
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