Can I start a retirement plan for my children?
Answers | 2
How to choose?
If your child’s income is less than the threshold set by the IRS for filing a tax return, she is likley in a 0% income tax bracket and may not benefit from the up-front tax deduction associated with traditional IRAs. So, in general, a Roth is the choice for minors who have limited income and cannot benefit from up-front tax deduction).
*babysitting & dog-walking count if she received payment – please have a W2, 1099 or keep records of the payment she receives during the year.
Let me know if you have any other questions,
Stacy (WIN, My Dollar Guru in New York)