Menu

Roth IRA for kid

Home Retirement Accounts Roth IRA for kid

  • Avatar BenSk 
    Participant
    Status: Physician
    Posts: 11
    Joined: 03/29/2018

    question: I plan to open a Roth IRA for my just-turned-18 daughter at Vanguard and invest into target date fund. I understand that I can only contribute to the same amount of her earned income (she will go to college this year and plan to work part time). So does she need to file tax separately (was claimed as our dependant)? I am bit confused if she still file tax with us, will our family total income (phased out from Roth) causing her not be able to contribute to Roth?

    #220271 Reply
    Avatar SLC OB 
    Participant
    Status: Physician
    Posts: 456
    Joined: 06/23/2018

    First off, minimums at Vanguard are higher, just FYI. Fidelity does not have minimums. Not sure about the others.

    My understanding, she will continue to be your dependent, even with a Roth IRA. ¬†She will file her own taxes, since she has earned income, but you will still claim her on your taxes. Your income won’t matter for her Roth IRA.

    #220273 Reply
    Liked by FamilyFirst

Reply To: Roth IRA for kid

In case of a glitch or error, please save your text elsewhere, clear browser cache, close browser, open browser and refresh the page.

Notifications Mark all as read  |  Clear