Roth for adult child
Can a parent contribute to a Roth for a college student who has no earned income or only minimal earned income? Thank you.
KathyP.
Can a parent contribute to a Roth for a college student who has no earned income or only minimal earned income? Thank you.
KathyP.
Permalink Submitted by Alan Spross on Fri, 2009-03-20 22:51
The parent could gift an amount equal to the student’s earned income to the student and the student could use that amount to open a Roth IRA. There must be earned income to make the contribution. Check the Roth custodian’s small account fees as it is possible that the fees would be more than the earnings.