I know this is a 20-something forum, but I didn't see where else to ask this question. If it needs to be elsewhere, please let me know.I have 2 kids. One is 12 and one is 9. I pay them both a small yearly salary from my business for things like emptying the trash, shredding documents, cleaning up, and so on. They both file taxes.I would like to set up a retirement account (a Roth) for them, but I haven't been able to get a clear answer about the required age.Some sources have told me they need to be 13, some say 16, and some say that they just have to have earned and reported a wage in any given year to make contributions.So, I need to know what the real answer is.I would love to be able to have them contribute even a little bit each year. What a head start that would be!Thanks in advance :-)
I didn't think there was a minimum age requirement, was your bank/broker tell you that?
Hi,As a 20 something, I see a lot of my friends struggling with college debt. This has kept a lot of them from opening a roth. If you think your kids might go on to more school after high school, I would recommend looking into a 529 plan. It works similar to a Roth except for school expenses instead. This could give them a wonderful headstart when they graduate (and the excess can be transferred to the younger sibling, cousins, future grandkids etc).
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