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 Are contributions to a minor Roth IRA able to be withdrawn tax-free at anytime without penalty like any standard Roth?
Permalink Submitted by Alan - IRA critic on Tue, 2023-04-04 19:15
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.