[WSBAPT] SEP-IRA for kids? Pre-Tax?

[John Creahan]

If someone does not have any earned income, he or she cannot use pre-tax dollars to fund an IRA (except for certain non-working spouses), so I don’t see how a company cannot establish an IRA for an employee’s child. If the child is also an employee, she could, of course, participate if she met the eligibility requirements.
I suppose some business owners might “hire” their kids and fund the child’s IRA with salary, but the SEP rules limit the benefits of this approach.
A child who earns wages – even working part time – is eligible to set up a traditional or Roth IRA, which, in most cases, would be funded by parents.
I don’t know if this answers your question, but feel free to follow up.
John


John Creahan
john at cairn-law.com<mailto:john at cairn-law.com>
1325 4th Ave., Suite 940
Seattle, WA 98101
206-621-5848
www.cairn-law.com<http://www.cairn-law.com/>
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From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Victor R
Sent: Thursday, March 26, 2015 2:09 PM
To: wsbapt at lists.wsbarppt.com
Subject: [WSBAPT] SEP-IRA for kids? Pre-Tax?

Members:

Any of you ever hear of this type of investment vehicles for employees for their kids?

... or even something similar?




--

Victor Ro, Esq.
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