- quote -

You are luckier than we were. Our father paid us 1 cents
worth of candy per day (and only if we were on good
behavior) and a 5cent ice cream cone on Sundays (again, only
if good behavior).

I know, I go waaaayyy back <G
Kate, EA in PA

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Dick Adams wrote:
- quote -

Can assure you that me and Mr Dewars are quite okay, since I
tend to answer posts when I get home and DURING happy hour.

Like now.

With children, since we're on the subject, the best thing a
parent can do is to educate them in money matters, and the
majority of parents do not do so.

While parents, as guardians, can surely direct financial
affairs of those in their charge, I never hesitate to advise
clients to take time with their children in financial
matters, to explain whys and why nots. Especially for the
kids' first tax returns. Many of us have had interractions
with clients' kids who think that they should get back all
paid in on the W2, including of course something quaintly
called social security and medicare tax. (sigh)

I just wish parents would take their responsibility for
setting the right examples seriously.

I'm through now.

ChEAr$,
Harlan Lunsford

cept to say good luck, Dick!

---------
Thank ya, sah!

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Your daughter would be lucky to get paid. My father paid me
in ice cream cones per day for my work in his store when I
was her age until his accountant told him he had to pay me
in real money.

Linda Dorfmont E.A., CFP, CSA

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"Harlan Lunsford" <hlunsford[at]bellsouth.net> wrote:
- quote -

Thank you for telling me my real job.

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"Harlan Lunsford" <hlunsford[at]bellsouth.net> wrote:
- quote -

WOW! Harlan, mi amigo, free will for a 10 year old to
decide whether or not to save for her old age? That's
awesome, Harlan! Are you ok?

Dick

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David Woods, EA, ChFC, CLU wrote:

- quote -

Quick note, DAve. the daughter is not to be a computer consultant,
rather a software tester, a very good occupation for someone her
age who would be target audience.

Assuming that father treated her correctly, i.e. employee, and
furnished necessary W2 form, an IRA would be very appropriate.

ChEAr$,
Harlan Lunsford, EA n LA
Mon 31 Jan 2005

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Bill Nicholson wrote:

- quote -

Your child would be your employee. You would issue her a
W-2. Her wages would allow her to make a contribution to
either an IRA or Roth IRA. No social security, medicare
taxes or FUTA are paid. The child is exempt until age 18 for
those items other than FUTA. FUTA exemption is until age 21.
In addition, the wages are an ordinary and necessary
business expense that you can deduct. Good deal, huh!

--
Alan
http://taxtopics.net

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"Bill Nicholson" <usenet[at]nicholsoncomputerconsulting.com> wrote:

- quote -

$1.00

- quote -

You must have earned income to make retirement plan
contributions. You could hire her to test your children's
software, and she could contribute the earnings to a Roth
IRA, up to the $4,000 2005 limit. You definitely should be
looking at Roth, since she'd pay zero income tax on $4,000
and wouldn't benefit at all from a traditional IRA
deduction.

SEPs are not available to employees, and in the situation
you describe she would be your employee.

Phil Marti
Clarksburg, MD

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Bill Nicholson wrote:

- quote -

Last thing first; yes, she has to have earned income. Yes,
it can be done; trick is finding an institution who will
assist you. AFter all, it should be HER decision as to
whether or not to save for her old age. (grin.

Your real job is to guide her in the right direction, while
allowing her free will to make the decision.

ChEAr$,
Harlan Lunsford, EA n LA
Sun 30 Jan 2005

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"Bill Nicholson" <usenet[at]nicholsoncomputerconsulting.comwrote:

- quote -

She has to have income. She cannot have a SEP as she's not
self employed unless she is your employee and YOU fund the
SEP, and you fund ALL employees similarly. However it must
be bona fide employment and I'm not sure I'd want a 10 year
old girl as a computer consultant or expect such arrangement
to be taken seriously.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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My daughter is 10. I am self-employed as a computer
consultant and I'd like to set her up with a SEP or IRA or
whatever the correct term might be. How much income would
she have to earn in order to do this? I'm speculating that I
could hire her as a software tester for a kids program that
I am developing, then she would have legitimate income. Or
does she even need an income source in order to open a
SEP/IRA??

Thanks,

Bill
Cincinnati, OH USA

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