Opening and Funding a Minor Roth IRA
A client would like to open/fund a Roth IRA for her son. The son has earned income from mowing lawns. He is paid in cash and doesn’t have a W-2 or 1099. Can the client still open/fund a Roth IRA for her son? If so, what supporting documentation is there and does the client need to do anything to verify her son’s earned income?
Permalink Submitted by Alan - IRA critic on Thu, 2025-03-20 19:01
If the wages were reported on a W-2, would the son have to file? If so, the son should file to provide some documentation for the earned income. If still below the filing threshold, he needs to document the amount of work he did each week and how much he was paid should the IRS ever ask. It’s unlikely that they will ask.