MONEY LIFE HACK: Setting Up A Roth IRA For… YOUR BABY?!

by | Sep 2, 2022 | Vanguard IRA | 41 comments

MONEY LIFE HACK: Setting Up A Roth IRA For… YOUR BABY?!




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41 Comments

  1. Avinash Narine

    Now can I just do a regular roth or I have to do a custodial roth?

  2. Manager Lynn

    What job a kid can do to be qualified for earned money for IRA contribution? Especially for little kid or infant.

  3. J T

    2:20.. your child might be paid for modeling photos that never actually get run in the ad? Maybe they can still be paid for the photo shoot?

  4. Victor Reyes

    And can this be done for children outside the United States

  5. Victor Reyes

    How does one prove the child has done some sort of work or labor

  6. Nate Sandoval

    I just set up a custodial brokerage account for my 6 and 7 year old. Would dividend income from a brokerage account be considered earned income ? I'm trying to think of ideas of how to get earned income for my kids so I can open a roth ira for them now and get a head start on that compound interest

  7. Jose Calasan

    Can you name the top three best Roth IRA accounts I can open for my 5 year old? I mean I have to do or this via a brokerage firm? Or my BOA bank branch office?

  8. G Vue

    You can out your kids chores as income, cleaned the house, took out trash, washed the car etc.

  9. Dana Mitchell

    Can you do an updated video plz

  10. Food Monster

    Scenario on is a one time contribution of $5,500? Also, does the child have to earn at least the contribution max to contribute the max?

  11. AUSTIN ❷❶❺

    Use a rental property in there name?

  12. nick pontifex

    Would it be possible to purchase your child’s pictures as an NFT and have that count as earned income for them?

  13. DIYworld Productreview

    How can I give someone.. like my daughter. Big money .. like 150k. without it being taxed..

  14. scotty3kable

    Where are you from? I can't place the accent.

  15. Hakkin Dumma

    What chore can a 1 year old kid do so that we can term it as money the kid earned ?

    When you say 0 – 59 years … so even if we own the account, and they have their own ROTH IRA account, can we still max out while they max out using backdoor Roth ?

  16. Angel

    How do I prove that the child is getting paid. Will me paying my kid 20$ a month to do chores count?

  17. Latisha Youngblood

    This short video explained it well.. I now completely understand how to make this work for children. I do still wonder if a child had a business do you set it up under the LLC. I'll do more research

  18. James

    can an earned income be chores around the house?

  19. E-J-gym

    Thanks !!!! I have 15 years old , i open the Roth IRA but i am not sure she need to file tax and she needs W-2 i am not sure IRA will audit .

  20. Evan S

    Nice video, opened my Roth IRA at around age 15.

  21. Alexandria M

    But what 1 year old has earned income?

  22. Sebastian

    I’m trying to set myself up financially right now at 16 y/o so I can be sure that my dream in life of having my kids live an easy life and my kids’ kids live an easy so on so on, can come true. That is my #1 goal in life and I know by developing habits like these that I can achieve that dream.

  23. C S

    Hi! I just recently went back to college @ age mid 30's. I am a pre-Finance Major, and learning the basics so far (think navigating HP10bII+ Calculator, and the PV/FV functiosn in Excel; those basics). Regardless, the most important thing I've learned in these excruciatingly painful chapters is that time is our friend, and therefore, I plan to contribute now instead of waiting until I graduate, get a job, and master these investment stuff. With this, my husband and I have decided that we will contribute the max IRA ($6000) this year.
    We have an eleven year old daughter (no income). Suppose she has an income, but is still below 18, could she contribute her own $6000 dollars, or is it $6000 per family — meaning if my husband and I contribute the full 6k for us, my daughter can't contribute her own 6k? Thanks for your help.

  24. Anna Wixom

    I still don’t understand how you can open up one for a baby with no earned income? Baby modeling isn’t an option lol.

  25. Felipe Behrens

    Maybe your baby can make you tube videos…

  26. laceyb81

    I thought u were able to take money from your IRA without penalties from your personal contributions. Anything above and beyond such as interest would incur the penalty. Is that correct?

  27. Mr and Mrs Bernstein

    What is the difference between scenario 1 and 3?

  28. jkrichbaum

    What about birthday money for a baby?

  29. Jamie L

    My 2 and 5 year old have a savings account in a bank but I want to open a Roth ira for them. But how else do they earn income if they don't model? Or do they have to wait til they are teenagers?

  30. rachel widerman

    The earned income sounds so shady! How about if an Aunt gifts the money to the baby? Can that count?

  31. Good Karma

    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!

  32. Ida Sha

    Does the survivor benefits from SSN counts as income for child?

  33. KC Shutters

    I don't understand scenario 1. Any feedback?

  34. G. Sum

    My mom gave me a $10000 gift for my 2 children. They don’t need it for college. I want to start Roth IRAs for them but they are 13 and 15 and don’t have jobs yet. Did I declare to the IRS that the money was income from my mom for work they did for her and pay taxes on it can I use it to open one?

  35. Al

    Would I be able to open a Roth IRA for my 5 month old and the money he contributes to his acct would be an allowance from his parents? Would that be considered earned income ?

  36. liliana garay

    This is so empowering I'm going to do this with my kids and their education.

  37. Stock Compounder - Brad Kaellner

    This is perhaps the most financially empowering thing you can do for your child! TIME is the great compounder

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