The ROTH IRA (USA) requires earned income to be allowed to deposit (add) money. There is no rule that the money earned is the money deposed. If your kid has a job, and you have extra money, look into opening a ROTH with them. Kid spends their money (or not), and deposits your money in their account. Bingo setting kid up for old age.
The ROTH IRA (USA) requires earned income to be allowed to deposit (add) money. There is no rule that the money earned is the money deposed. If your kid has a job, and you have extra money, look into opening a ROTH with them. Kid spends their money (or not), and deposits your money in their account. Bingo setting kid up for old age.
I am not a tax accountant.
That’s a fairly common strategy - give your kid a gift up to the max amount that isn’t taxable, which they then deposit into their retirement account.
Also income limits on a Roth IRA are easy to circumvent with the back door workaround.
There is also SEP IRA
What is SEP IRA?
It’s a typical IRA but catered to self employed individuals