"Benjamin Yazersky CPA" <johndoe[at]nowhere.com> writes:
- quote -

But do a Roth IRA and *not* a traditional IRA!

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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malibu.ron[at]verizon.net wrote:

- quote -

Yes, assuming you issue him a W-2 form each year AND you can
find a custodian willing to open the account for him.

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malibu.ron[at]verizon.net wrote:

- quote -

this is what I did this year. I found out some of the
following information thru this site. I am a sole
proprietor, my two 8 year old children are paid $100 each
per month for helping me in my business. I write a business
check to them which gets deposited into their savings
account. From there it gets deducted into their Roth IRA. I
set it up with Schwab. There was no charge. It is a
custodial account; the form can easily be download of the
internet. It took about 10 minutes to fill it out, I also
arranged that the $100 gets deducted out of their savings
accounts every month and added to the Roth. You have to do
W2's and 941's. I called the local tax agencies and they
assured me that I don't owe any taxes on this, but you still
have to file the W'2 and the 941. This only works if you are
not incorporated, otherwise differnet rules apply. One
gentelman said it would be fine to do one payroll for the
entire year and file one 941 and mark it as seasonal work.
It is my understanding that this can be done with children
as young as 7 years old. The wage has to be resonable and
should be the same or a little less than what you would pay
a hired help. By the way, I live in New Mexico, different
states might have different tax issues. It is never too
early to start a Roth IRA, I hope my children will realize
later in life what I did for them and carry on the same
tradition. The limit for a Roth is $4,000 this year. Hope
this helps.

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malibu.ron[at]verizon.net <aristotle65[at]hotmail.com> wrote:

- quote -

Assuming grandson is earning his keep, and is being paid
what you would pay anyone else to do this job, sure, he can
open his own IRA -- better make it a Roth -- for his entire
earnings up to $4000.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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"malibu.ron[at]verizon.net" <aristotle65[at]hotmail.com> wrote:

- quote -

Yes. If he has earned income, he can fund an IRA, up to the
amount of his earned income.

--
Barry Margolin, barmar[at]alum.mit.edu
Arlington, MA
*** PLEASE don't copy me on replies, I'll read them in the group ***

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malibu.ron[at]verizon.net wrote:

- quote -

Only if he receives a W2 form from you.

ChEAr$,
Harlan Lunsford, EA n LA

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"malibu.ron[at]verizon.net" <aristotle65[at]hotmail.com> wrote:

- quote -

If you pay him a salary & give him a w2, the kid can put it
all into ira-up to the max ira contribution limit.

I think its a great idea.

___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] > > -----> real address on hobokeni or hobokenx <-----

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"malibu.ron[at]verizon.net" <aristotle65[at]hotmail.com> wrote:

- quote -

Yes, and it's a great idea since he won't have any income
tax due on this small amount.

--
Phil Marti
Clarksburg, MD

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My grandson is 9 years old and I reward him for his helping
with my business. He files papers, cleans up, etc. He
earns around $50 monthly. Can he open an IRA at this early
age and place some or all of his wages in it.

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