ROTH IRA for 15 year old
I have a client. They have a sole proprietor business and pay their son $5,000 a year of income as a salary. They are trying to stay just below the line of having him pay taxes. Can they put those funds into a ROTH IRA?
I have a client. They have a sole proprietor business and pay their son $5,000 a year of income as a salary. They are trying to stay just below the line of having him pay taxes. Can they put those funds into a ROTH IRA?
Permalink Submitted by Alan - IRA critic on Tue, 2015-10-06 23:22
They must file a W-2 reporting the child’s income and child can use the Box 1 amount for a Roth IRA contribution. Child is exempt from SS and Medicare taxes.