Permalink Submitted by Alan - IRA critic on Mon, 2022-08-15 16:56
Yes, as long as the earned income is legitimate. Allowances for household chores does not count because that income is not taxable income. If there is legitimate earned income, a minor’s contribution would typically be made to a Roth IRA since the minor may not have enough income to be taxable or would be in the lowest bracket.
Permalink Submitted by Alan - IRA critic on Mon, 2022-08-15 16:56
Yes, as long as the earned income is legitimate. Allowances for household chores does not count because that income is not taxable income. If there is legitimate earned income, a minor’s contribution would typically be made to a Roth IRA since the minor may not have enough income to be taxable or would be in the lowest bracket.