Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next
Author: blacktreechaser Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121565  
Subject: roth ira for your young kids/grandkids Date: 4/17/2012 10:06 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
Don't forget a roth ira for your young kids/grandkids that are old enough to work but do not have a W-2.

You DO NOT need an W-2 to set up a Roth. If a 12-year old made $700 by babysitting, that is earned income, and entitled to go into a Roth.

I knew of one fund family, Heartland, which would get a Roth going for you with $1,000. So, if your son made $500 in 2011 and will make $500 in 2012 mowing lawns on the week-end, that will suffice for the $1,000 minimum deposit.

If you want to claim that your 4-year old made $6,000 last year from plowing snow.....??? Well, that just might be pushing it a bit.

The Roth is a great break to get money growing tax free for 50 years or more if you set one up now for the adolescents.

For the doubters here, please DO NOT respond to this post saying people need to pay into FICA and Medicare and need a W-2 to have a Roth...because you do not know what you are talking about. Read Publication 926 about having someone under age 18 doing household work.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Dividend Growth Investing

Good Time for Dividend Champions?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement