Roth IRA for a minor

[kguadagno1]

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....

[Bsch4477]

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. 

[MaryK4]

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.