Get certified In EVERY strategy I teach! Learn how by booking a FREE 15 minute demo:
The Crypto IRA Page at Directed IRA:
For more info on our Directed IRA company, visit:
To open up a self directed account visit:
Is it even possible to set up a Roth IRA for your children? Yes, it most definitely is and in this video, I break down what you need to do in order to make it happen.
Tax Professionals You NEED This:
Save THOUSANDS With My Ultimate Tax Strategy Guide:
To Get Started With Any One of My Teams:
Check out my Law Firm KKOS Lawyers at
If you need Tax help you can trust, check out my Certified Tax Advisor Network:
I go LIVE almost every week…Don’t forget to Subscribe and Hit that bell icon so you get a notification every time I upload a new video or go LIVE
If you liked the video, please give it a “Thumbs up!” and please subscribe to see more!
#Taxes #avoidtaxes #paylesstaxes #tax #realestateinvestment #Markjkohler #KKOSLawyers #markjkohlerLIVE #Entrepreneur #rentalrealestate #taxplanning #smallbusiness #taxlaw…(read more)
LEARN MORE ABOUT: IRA Accounts
CONVERTING IRA TO GOLD: Gold IRA Account
CONVERTING IRA TO SILVER: Silver IRA Account
REVEALED: Best Gold Backed IRA
Can I Set My Children Up with a retirement account? Tax-Free Income!
When it comes to securing your children’s financial future, setting up a retirement account might not be the first thing that comes to mind. However, starting early can provide them with invaluable benefits and long-term financial security. Not only can setting your children up with a retirement account help them avoid financial hardships down the road, but it can also offer tax advantages that can significantly impact their financial well-being.
One of the most popular options for setting up a retirement account for your children is the Roth IRA. A Roth IRA allows your children to contribute earned income into the account, which then grows tax-free over the years. This means that when they reach retirement age, they can withdraw their contributions and earnings without paying any taxes on them.
One of the biggest advantages of a Roth IRA for children is the power of compounding. By starting contributions early, the account can accumulate significant growth over the years. And since contributions to a Roth IRA are made with after-tax dollars, any withdrawals made in retirement are entirely tax-free.
But how exactly can you set up a Roth IRA for your children? The process is relatively straightforward. To be eligible, children must have earned income, such as wages from part-time or summer jobs. The contribution limit for a Roth IRA is generally the lesser of their earned income or the annual limit set by the IRS, which is currently $6,000 (as of 2021). It’s worth noting that contributions can be made on behalf of the child, meaning parents or guardians can contribute to their child’s Roth IRA as long as they have earned income.
Setting up a Roth IRA for your child also comes with some potential tax benefits for parents. For example, if you choose to contribute to your child’s Roth IRA, you may be eligible for the Saver’s Credit, which can directly reduce your tax bill. Additionally, you can help your child understand the importance of saving for retirement and teach them valuable financial lessons at an early age.
Another option to consider is a custodial IRA. With a custodial IRA, a parent or guardian acts as the custodian and manages the account until the child reaches the age of majority (usually 18 or 21, depending on the state). Once the child reaches that age, they gain control of the funds and can continue contributing or manage the account as they see fit.
It’s important to note that while setting up a retirement account for your children is a proactive step towards their financial security, it should not come at the expense of other financial goals, such as saving for their education. Balancing multiple financial priorities is crucial, and seeking the guidance of a financial advisor can help you make the best decisions for your family’s specific situation.
In conclusion, setting up a retirement account for your children is an excellent way to provide them with tax-free income in the future. Whether you choose a Roth IRA or a custodial IRA, starting early can take advantage of compounding growth and potentially set your children up for a comfortable retirement. So, take the initiative and begin securing your child’s financial future today.
I wish were where friends… I need people like you in my life! This information is life changing!
My son and I receive survivor benefits from my husband loss. Can I open Roth IRA account for my son? He will take the survivor benefits four more years until his 28 years old. If yes, Can my accountant helps me to this?
I have a sole proprietorship business. Should I file w2 for my kid if hire him? (I will only pay him several hundreds this year).
Amazing knowledge. Thank you for sharing
Can you have your child get paid via 1099? I have a 9 year old that does help me on my business.
Genius!!! Thank you for the information! It’s changing our lives!
Will the Roth IRA balance effect the kid to apply for grants and scholarship or low interest federal aid when it comes to college years?
Thank you Mark.
will this significantly impact the kid's future financial aid amount since this is the assets can grow under his/her name?
subscribed!
Very informative video thank you
How about I don’t have a business?
I can’t make my kid Roth account?
Can you or a relative pay your kids for babysitting to acquire earned income, and use that money to open up and fund a roth for them and then could I still claim them as dependents and receive my usual child dependent tax credits if they each make less than 5k per year?
Do you have a link to kids income
i have a minor child that i started giving house chores like folding his own launry, pickup leaves in fall season, water plants in spring, does lemonade stand, empty garbage can in his room etc… So far he has save total of about little over $5k. I didn't know anything for having Roth account for a minor until this wk.
My question is what do I need to proof the IRS how he earned the money ? Thank you!
Thank you! If they have income from their Custody Account? Could I open a Roth? Amazing video!
Can I hire my 7yo as a household employee (no llc or business) and personally pay him for house tasks? Such as Supervising his 2yo sister while we are home doing other tasks…e.c.t.
My kid is 7. He has his own DBA (in my name of course), however he recycles cans and makes about 1200 per month. He is paid cash from recycle centers and given a receipt. We would like to put all his earnings in a Roth. Can this happen without the W2 being he is being paid cash?
What are the impacts on financial aids if I have custodial Roth IRA?
Before you post any video check your audio settings. one of the worst video very low sound.
thank you so much for all the information.
which website do you prefer for open a custodial Roth ira？
Could I hire my nephews and kids for my business even if they under 18? Or does it have to be just my kids?
If I create a LLC over my roth IRA and this LLC get some credit cards with limits 5 times my roth balance and I use to buy products to sell online, all of earns (net profit) will be tax free? (Leverage strategy)
Thanks you for this video. I plan on investing in Vanguard ETFs for their ROTH, but I like the information. It seems to me that you really are happy to help people. I got to subscribe and check out the channel.
Going to call Ruby right now for a friend boss!
So you don't have to have a Coverdell acct to pull money out for college? You can do this with just a ROTH?
Mark, your the best , thank you for all your time
Great video, thx a ton! My wife and I have an S Corp that owns our LLC which is a remodeling co. Currently our kids are 2 & 4 yrs old, is it possible to start up their IRA’s while they are that young? Also I just got off the phone with chase bank they are telling me that they do not offer an IRA for minors. Do u have a recommendation of where to go to open one up for them? Of course if it’s possible….
I was thinking about setting up a Fidelity account for my kid's IRA. Their site says "Qualifying income can come from a job and/or self-employment such as babysitting, mowing lawns, or shoveling snow". I will not need to open an LLC for his business right? Would I just need to set up his own accounts so that there is a trail when people pay him?
The approach I decided to take is create a ugma account and have this account fund the Roth for the children. Both of my accounts are in a brokerage account. I do plan on creating a LLC for the children to buy things. I have a 529 plan also for college. The only thing I have to worry about is the gift tax with the ugma account. I might take your approach on this
This is amazing! Thanks a million.
You da man
I really want to do something like this. Thanks.
If your kid works for your LLC, though, don't you and they have to pay FICA?
That IS exciting! Thank you!