No the parents will not lose the other dependent credit if they are the qualifying dependent of the parent. See the article for the requirements.
A return is not required for your child if that is all the income they earned. Also, you don't have to report your contribution to a Roth IRA; however, you may want to input it into TurboTax so you can track your basis. In order to avoid paying taxes on the earnings, it’s necessary to leave your contributions in your Roth IRA for at least five years.
To enter a Roth IRA contribution go to:
- Federal Taxes > Deductions & Credits
- Scroll down to "Retirement and Investments"
Select "Traditional and Roth IRA Contributions"
- Continue with the interview to enter your Roth IRA contribution
You generally have to start taking withdrawals from your IRA, SEP IRA, SIMPLE IRA, or retirement plan account when you reach age 72 (70 ½ if you reach 70 ½ before January 1, 2020). Roth IRAs do not require withdrawals until after the death of the owner.
[Edited: 02/01/2022 | 1:55p PST]
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