Kid's Roth IRA Handbook

The Kids Roth IRA Handbook: Securing Tax Free Wealth from a Child's First Paycheck
Money Answers for:

• employed children
• their parents
• the self-employed
• entrepreneurs (both parent and child)

Best Books for Children and Teens;
rated by Cleveland Public Library
In December 2008, The Kid's Roth IRA Handbook was a selected pick for the Cleveland Public Library's Youth Services Department's Celebrate With Books 2008 guide.

What if Every Child had a ROTH IRA?

Recently I heard someone say they will not leave the world a better place (as is so often mentioned in the media today) but instead they will leave better children for the world. Imagine if every child had a Roth IRA...

I hope The Kid's Roth IRA Handbook instills the sense of urgency that once children have a job, the next immediate step is to begin a Roth IRA. I encourage readers to use this book as a learning tool to learn the many ways children can be employed today and as a quick reference guide to publications needed from the IRS to assist in tax completion and law clarifications.

This The Kid's Roth IRA Handbook covers some very basic ideas but quickly moves into complex issues, including some basic taxes. We should not presume children will not look at a tax publication but instead be optimistic and provide them with the opportunity and incentive to do so. Children learn quickly, enjoy challenges and think computers are fun. With the pace in which the appeal of the internet is growing each day, it is reasonable to direct kids to use internet links and online calculators to project their finances. As parents, we should assist them, guide them, teach them, and set a good example through our own financial behavior. I recommend using this book as an interactive guide between parents and children.

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!