Never Too Young to Consider Retirement - Contributing to a Child’s IRA

by Michael Popeck 23. July 2012 14:00
Establishing an individual retirement account (IRA) in a child’s name can be an effective planning technique for a child with earned income.  The usual IRA rules and limitations apply.  Thus, for 2012 a child must have legitimate self-employment or wage/salary income, and the annual IRA contribution cannot  exceed the lesser of $5,000 or 100% of earned income.  The key to contributing to an IRA is that the child receive earned income. Visit the AICPA’s Case Study to read more about the findings in the case study.
Categories: Advisory