2007-10-05 10:17:29 · 4 answers · asked by Marcelo G 2 in Business & Finance ➔ Personal Finance
Your children and grandchildren must have earned income to contribute to an IRA (any IRA). The one year old will not meet any test for earned income. You can pay the 16 year old a salary - enough to meet the standard for contributions to a retirement plan. As long as the 25 and 21 year olds have verifiable wages - knock yourself out.
"How can you do this? The U.S. Tax Court has validated a parent hiring his 7-year-old son to work for his business and allowed the deduction for reasonable wages paid. So, in a non-business setting, we know we can start with children who are at least 7 years old. (No hiring of infants, please.)"
http://moneycentral.msn.com/content/Taxes/Preparationtips/P33215.asp
2007-10-05 10:24:24 · answer #1 · answered by pepper 7 · 1⤊ 0⤋
Unless your grandchild is on TV, I doubt she has an income. IRA contributions are limited to the EARNED income of the owner. As for your sons, you can GIVE your sons the amount they are eligible to contribute to a Roth IRA. I am not certain you can directly contribute to the Roth.
2007-10-05 13:19:23 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
It is my understanding that the individual whose name is on the account has to be employeed and paying income tax. In the state that I live in I was not able to open such an account but instead opened a savings account
2007-10-06 16:00:24 · answer #3 · answered by carly sue 5 · 0⤊ 0⤋
I don't now but you can set one up for me -- I'm 49, married 25 years with grandchildren too but I'm still adoptable...ha ha
On lay off and broke so I just wanted to send a funny.
2007-10-05 10:20:50 · answer #4 · answered by butterfliesRfree 7 · 0⤊ 1⤋