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Started By
Message
Can I start my young child (6) a Roth IRA?
Posted on 7/29/16 at 4:18 pm
Posted on 7/29/16 at 4:18 pm
She obviously doesn't earn an income yet. What's the best vehicle to get her nest egg started and not affect possible future financial aid calculations?
TIA
TIA
8
Posted on 7/29/16 at 4:35 pm to white perch
to have any IRA, you have to have earned income. If not, then a UGMA account would suffice, this would have a 20% affect on financial aid.
You could also do a 529 account which has even less of an effect on financial aid but the limitations on what you can use that money for or more strict.
You could also do a 529 account which has even less of an effect on financial aid but the limitations on what you can use that money for or more strict.
Posted on 7/29/16 at 4:37 pm to white perch
Must have earned income
Posted on 7/29/16 at 4:44 pm to white perch
You are a doctor. Take a pic of your child and use it in your office. Then put child's compensation for being a model into his/her Roth IRA.
Posted on 7/29/16 at 4:45 pm to TigerintheNO
quote:
Must have earned income
1)Create shell company
2)Appoint her your secretary
3)Give her a hefty salary for her hard work
4)Profit??
Disclaimer for all reading: I have said the above in jest. Do not follow any advice read without consulting someone who knows what they are talking about-you like any business major or attorney. Thank you.
Posted on 7/29/16 at 4:54 pm to NYNolaguy1
quote:
Profit??
taxes
Posted on 7/29/16 at 5:12 pm to white perch
for Roth IRA, you need earned income.
I have funded my son's with any earned income he has had up to the limit since he started working at 16.
If he leaves it alone, he will be rich when he retires.
I have funded my son's with any earned income he has had up to the limit since he started working at 16.
If he leaves it alone, he will be rich when he retires.
Posted on 7/29/16 at 11:21 pm to white perch
I wish my parents would have been as thoughtful and caring about their kid's future as you are. 
Posted on 7/30/16 at 10:15 am to white perch
You really should seek help from a CPA/ tax attorney if you are high income. One popular possibility is a Crummy Trust but Trusts are taxed incredibly high.
I'd do a 529. If your kid gets any scholarships my understanding is the amount equal to that can be pulled out from the 529 tax free and used for other things. So it is very possible to use a 529 for other things than education.
I'd do a 529. If your kid gets any scholarships my understanding is the amount equal to that can be pulled out from the 529 tax free and used for other things. So it is very possible to use a 529 for other things than education.
Posted on 7/30/16 at 10:58 pm to baldona
You sure about that? I am not being a smart arse. I just haven't had heard of that. I hope that is true.
This post was edited on 7/30/16 at 10:59 pm
Posted on 7/30/16 at 11:10 pm to white perch
ill tell you one thing, you love UGAZ alot, and thats a decaying piece of garbage, do the kid a favor and dont buy her any UGAZ. Stick to indexing please and dont stuff her inheritance full of UGAZ
Posted on 7/31/16 at 3:55 pm to tigerskin
quote:
You sure about that? I am not being a smart arse. I just haven't had heard of that. I hope that is true.
After looking again it looks like you can withdraw it as income at the child's tax bracket. But most college kids are in low brackets. So there is a tax hit but that's not that bad.
Posted on 8/1/16 at 5:36 pm to Shepherd88
There won't be any need for financial aid in 12 years.
Posted on 8/1/16 at 5:43 pm to white perch
You have to have earned income as others have said.
If your kid earns 5500, you can throw 5500 of your own money in there, regardless of what the kid does with it. When I have a kid, I'm going to make sure he puts some of his own money in there, but fund it to the amount he makes every year.
If your kid earns 5500, you can throw 5500 of your own money in there, regardless of what the kid does with it. When I have a kid, I'm going to make sure he puts some of his own money in there, but fund it to the amount he makes every year.
This post was edited on 8/1/16 at 5:46 pm
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