Our 16 yo has a little PT gig so I'm thinking about opening him a Roth IRA. We would contribute the $6K but my question is does he have to make a certain amount to make this work or are we good so long as he has reportable income?

Appreciate the feedback

JamesBREI06 said:

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My name is kiiiiiiiid. Kid Roth

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inoffensive username said:

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My name is kiiiiiiiid. Kid Roth

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One of the big brokers needs to be all over this for a TV commercial.

Great question that I would also like to know. Don't have kids but always been something I was curious of... Start having your kids mow lawns at an early age for their neighbors and then push $6K into their Roth IRA every year lol.

Make sure you have them file taxes and claim that income if you are going to have them contribute to a roth.

hypeiv said:

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Make sure you have them file taxes and claim that income if you are going to have them contribute to a roth.

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This! but yes you can do that. In fact I did that this year for 2 of mine.

The money guy podcast brought this up on their show this morning. It's called a custodial roth and he files a tax return for his daughters babysitting money to keep it on the up and up. He also gives her a 1:1 match to encourage her to get in the habit of savings. Obviously she is capped by the total amount of earned income.

But she is 17 years old with over 5k in a roth. Even if she never puts another cent in it, when she is 65 yo it would be worth over $300k (assuming a 9% annualized return)