My 12 year old is a saver like me. We decided to put his money into a kids ROTH ira, and he is so excited to watch it compound over the years. I am still working but my husband is the breadwinner so all of my income goes to into a taxable portfolio. Retirement accounts fully funded, 529’s fully funded, etc. Should I have my 12 year old work for me and help him max out his ROTH for the next few years? The only downside I can think of is maybe he will need to pull the money out to buy a home or something. Would the 10% penalty be worth it? Should I continue shoveling everything into my taxable brokerage and just gift my son if he needs it, or lock it up in a kids ROTH for him?
Should I continue shoveling everything into my taxable brokerage and just gift my son if he needs it, or lock it up in a kids ROTH for him?
byu/Glittering-Egg6394 intax
Posted by Glittering-Egg6394
4 Comments
You do understand your kid needs to have earned income to contribute to a Roth account? What sort of “work” would a 12 year old be doing for you?
those things are vaults for $ that shouldn’t be touched until your kid is 60. that’s a looooong time to pack money away.
is he going to college? consider the impact on fafsa if you accumulate countable assets in a brokerage account.
I would put some into a Roth