My grandson is at the age (10) where he is picking up odd jobs, lawn mowing etc. Figure he makes $500 to a $1000 a year. I want to get him to put some into a Roth. I would then match up to the amount he puts into a Roth to double it. Is there any paperwork, issues, or IRS problems I should know about ?
Search Roth IRA for minors
Some info from Fidelity
https://www.fidelity.com/learning-ce...lds-retirement
Things to consider-
He cannot contribute more than his net earnings and that would include your match.
If his net earnings are $400 or more, he is responsible to pay self-employment tax on his net earnings.
Once it is in the Roth, it is his money. Once he reaches legal age, he can cash it in.
Men and fish are alike. They both get into trouble when they open their mouths. ~Author Unknown
A 10 year old paying taxes on mowing grass. LOL.Originally Posted by RedShad
In most cases, a minor will be below income levels for taxes.
The minor can also be paid to do odd jobs around your house, including babysitting a Grandfather.
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