Roth Ira conribution for minor
Assuming current Roth contribution is $6,000/yr
If my grand child earns income of $3,000 can I contribute another $3,000, so $6,000 could be contributed to his Roth?
My $6,000 can come form either my trad ira, or roth ira.
Permalink Submitted by Alan - IRA critic on Tue, 2019-12-24 22:51
If earned income is limited to 3000, then the Roth contribution is also limited to 3000. If grandchild did not receive a W-2 the source of the income must qualify as taxable compensation and some documentation should be kept. Household chores would not qualify because that income will not be taxed.