Minor Roth IRA

Client owns a business and pays his children for work done in the business. A portion of those funds are used to fund minor Roth IRAs. Are contributions to a minor Roth IRA able to be withdrawn tax-free at anytime without penalty like any standard Roth?



Yes, by the custodian of the minor before age of majority, or by the minor upon reaching the age. Distributions are reported on Form 8606 with the minor’s return.

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