Hello,
I have a 9-year-old who helped me with cleaning/power washing a property during turnover. She also helps me with paperwork, managing the online listing, and scheduling appointments.
I believe I can open a Custodial ROTH/IRA for her to pay for the services. Are there any rules of thumb to follow for how much I can contribute? I don't think I can justify her spending enough time to qualify for the annual max of $6000. Can I pay her local minimum wage for the approximate number of hours of work put in? Approx $16/hour * 60 hours = $960.
I am based in California and the property is owned in the name of me and my wife's trust. We actively manage the property without any property managers.
Is pre-tax or post-tax retirement account better for them. Do I need to issue a 1099-MISC. Any other compliance items I need to take care of.
Thanks
