How do I set up a Roth IRA for a sixteen year old
❓ Is it legal to put part of her earnings in a Roth IRA ?
Any special issues I should be aware of ?
We foster parent a teen girl whose family are addicts. We want to help her set up a Roth so she can look forward to a more secure financial future for herself.
Appreciate any help, direction, suggestions on this.
Permalink Submitted by Alan Spross on Mon, 2012-05-14 20:57
It may take a little time to locate a custodian who will open an IRA for a minor, and obviously you want as low a maintenance fee as possible.
The attached article spells out the earnings issues for minors, may of whom do not get a W-2 for work they perform. If there is no W-2, then notes should be kept to support the amount of earned income a minor receives for doing household chores, baby sitting, etc.
http://fairmark.com/rothira/minors.htm