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Roth for Kids & Foreign Income
Old 12-11-2018, 08:11 AM   #1
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Roth for Kids & Foreign Income

Hi All,
I really enjoy the no-nonsense advice that is given on this board, and the breadth of knowledge is amazing. So, here is a question for you all..

I have Children (aged 7-12) that are US/EU citizens who maintain physical residence in the EU with their Mother. The eldest has a small (<1500 USD) amount of Earned Foreign Income to his name for 2018 - cash which came from yard work/gardening.

I would like to establish a Roth for him. What hurdles (proof of income, Age, Foreign Income, etc) would you see in doing this?

I appreciate the advice, experience & insight!

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Old 12-11-2018, 09:07 AM   #2
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Nice way to help them begin thinking about their own financial future.

I’m no expert. They need social security numbers, then investment accounts, possibly custodial accounts. The child with income would probably need to file a tax return to report the income and record the ROTH contribution. He will need to document the income but this is typical for any tax return with foreign earned income abroad. No showstoppers here, but the investment account is probably the most difficult, as many investment companies only want customers domiciled in the US. I think Schwab has an account option for Americans abroad.

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Old 12-11-2018, 09:12 AM   #3
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I agree with Michael's post above, in particular in creating an account with a brokerage to hold the Roth for a non-resident.

Before our son returned to England he created an IRA account in readiness to roll over his 401k. (He did not have time after leaving work and moving to England to complete the rollover, and I know that opening an IRA from abroad is extremely difficult if not impossible)
Retired in Jan, 2010 at 55, moved to England in May 2016
Enough private pension and SS income to cover all needs
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Old 12-11-2018, 04:14 PM   #4
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Charles Schwab International is the way to go! My Wife (citizen and resident of Peru) has had an account with them for ages and their customer service is amazing.
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Thank you Thank you!
Old 12-11-2018, 08:01 PM   #5
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Thank you Thank you!

Thank you all - I appreciate your replies!

The Kids were all born in the US and have SSN's.

I'll reach out to Schwab Intl and see what they say.

Thanks Again!
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children, foreign, income, kids, roth

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