topic Roth IRA for a minor in Get your taxes done using TurboTax

Roth IRA for a minor

kguadagno1 — Tue, 01 Apr 2025 16:29:54 GMT

I have read that a minor can have a Roth IRA as long as they have ANY type of job that pays them cash - for example babysitting, paper route, ect... It seems this is a "scouts honor" type of rule where the maximum that can go into the Roth IRA is what the minor has earned or claims to have earned. Follow up - because they are saying they have "earned income" does that then mean they need to be claiming that income from babysitting, ect....

Re: Roth IRA for a minor

Bsch4477 — Tue, 01 Apr 2025 16:47:37 GMT

The income is self employment and subject to taxes. The net income after deducting the self employment tax adjustment can be used to contribute to an IRA.

Re: Roth IRA for a minor

MaryK4 — Tue, 01 Apr 2025 16:57:34 GMT

Yes, a minor can have a Roth IRA and as Bsch4477 said, self- employment income may be subject to self-employment tax. However, there are special rules when you pay your children through your business. You MUST keep accurate records of what work they did and how much you are paying them for, especially if they are under the filing thresholds for self-employment and/or income taxes.