Or do I have to file taxes first ?
2007-09-18 15:45:23 · 6 answers · asked by Me 2 in Business & Finance ➔ Investing
Way to jump the gun! There is no age limit to contribute, but you must get paid through "wages, a salary, tips, professional fees or bonuses." Even though you receive weekly salary, you have to have proof through which these wages were earned. This is where tax documents come into play. Since you do not pay taxes, all of your wages are seen as "unearned" i.e. the lottery, stocks, under the table(that's you) .
Basically, no you can't. Pay uncle Sam and start retiring! Good luck!
2007-09-18 15:58:09 · answer #1 · answered by james24 3 · 3⤊ 0⤋
Yes, you can have an IRA. See the site below. The people here who think you have an IRA to avoid taxes are only partly right but also wrong. A regular IRA would help you not have to pay taxes going in, but a Roth IRA means that your money grows tax-deferred. So, let's say you make $50 a week from babysitting, and you decide to save $1,000 a year. If you choose a regular IRA, you don't pay taxes on that money going in. If you choose a Roth IRA, you don't pay taxes when you take it out. So, $1,000 might grow to $128,000, invested at 11% a year, in a Roth IRA, by the time you're ready to retire. Clearly, the Roth is a better choice for you, especially as you can take out the original money you put in, although not the interest or dividends on it. I hope that helps you. Good for you for wanting to save.
2007-09-19 02:46:44 · answer #2 · answered by Katherine W 7 · 0⤊ 0⤋
I am not a tax professional, but you can start investing now. Find a no-load index fund from Vanguard and start saving your money. A Roth IRA will allow the earnings from your investments to grow tax-free. The earlier you start saving, the less you'll have to save later on in life.
If you had invested $10,000 in the stock market in 1937, it would be worth $13,000,000 today. That is the power of compounding interest and a long investment horizon. Go for it. You can open a Roth IRA for very little money with VANGUARD>
2007-09-18 23:49:26 · answer #3 · answered by Michael D 2 · 0⤊ 0⤋
IF you can get a statement of wages from those that hire you, you may be able to place up to $4000.00 in a ROTH. The problem in your case, is how much you may place in the ROTH is limited by the amount of REPORTED income to the IRS.
Check out the links below:
GOOD QUESTION. You deserve extra points for planning to be a millionare when you retire.
2007-09-19 03:15:33 · answer #4 · answered by Jeff H 5 · 0⤊ 0⤋
you must be 18 to invest, but u can get your parents to have like a joint account with you and they do it on your behalf. get stocks ira is not good for you right now.
2007-09-19 00:01:24 · answer #5 · answered by therealfreddy_p 3 · 0⤊ 1⤋
Why would you open an IRA to avoid taxes when you are not paying taxes? Invest in stocks or something.
2007-09-18 22:53:35 · answer #6 · answered by Anonymous · 0⤊ 4⤋