Quote:
Originally Posted by lewdog
Your best best would be to start a Roth IRA for your child if they are of "age" to have some earned income. Here's the lose definition of earned income from the IRS.
It’s up to you (or the child) to document that she had income earned from work. The money can’t be an allowance or a gift. (You can find more about the IRS’s definition here). It’s up to the account custodian to document the service rendered, when it was done, and the payment. It also has to be a reasonable rate. You can’t pay $1,000 for a night of babysitting.
http://www.rothira.com/roth-iras-for-kids |
She got close to $300 for her 13th. So I told her maybe we should invest it? She took the bait and said sure.
She's only 13 and it was a gift so she wouldn't qualify. Was thinking about opening up a brokerage account in her name and letting her play with it on her own.