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Hello. I opened a custodial Roth IRA for my children. My daughter (minor) is working this summer and will earn about $1,500 - $2,000 this summer on W-2.
1) Can she contribute the entire amount to her custodial Roth IRA account?
2) She earns about $1,000 by pet sitting and chores (non W-2 income). Can she contribute this amount to her custodial Roth IRA?
3) Does she need to send this amounts from her bank account to Vanguard (where she has custodial Roth account). If yes, I need to navigate that process since she doesn’t have check books or signing authorization from the bank.
I’d prefer that she save and invest this money for long term growth.
She is totally ok with investing her earned income. She gets money for all her needs and wants from us and we are totally happy with it.
Thank you,
LTC
1) Can she contribute the entire amount to her custodial Roth IRA account?
2) She earns about $1,000 by pet sitting and chores (non W-2 income). Can she contribute this amount to her custodial Roth IRA?
3) Does she need to send this amounts from her bank account to Vanguard (where she has custodial Roth account). If yes, I need to navigate that process since she doesn’t have check books or signing authorization from the bank.
I’d prefer that she save and invest this money for long term growth.
She is totally ok with investing her earned income. She gets money for all her needs and wants from us and we are totally happy with it.
Thank you,
LTC