Kids Can Borrow for College - You Can't Borrow to Retire! Open a Roth IRA for Kids~
Frequently Asked Questions
What age group is this book for? The rules in The Kids Roth IRA Handbook can be applied to all working children,
such as a baby model, babysitter, or cashier at a fast food restaurant. Children as young as 9 have read the book and they would need more assistance than a 12 or 16 year old.
We recommend you plan to assist your child as needed to explain more complex areas of the book.
The book is to be used as an interactive tool between parents and children. Parents should use the book to assist younger children.
How old do you have to be to contribute to a Roth IRA? There is no age limit to contribute to a Roth IRA for kids.
Do kids have to have earned income to contribute to a Roth IRA? Yes. Kids cannot use gift money. Sorry Grandma!
Actually, everyone, including adults (or their spouse), must have earned income (or their spouse has earned income) to contribute to a Roth IRA.
Does my babysitting money count as earned income? Absolutely and The Kids Roth IRA Handbook will provide
references where you can verify this.
Can parents employ their kids in the parent's self-employed business? Yes, you can and let The Kids Roth IRA Handbook
give you the guidance on how to do it right. You must keep track of hours worked and issue a Form W-2.
Can parents employ their kids as a "household employee"? Yes and The Kids Roth IRA Handbook shows you how!