A way to give your child a head start on their retirement is to open a Roth IRA as soon as they start earning money. Set a goal to reach before they graduate and watch the balance grow 40x by the time they reach retirement age. Some ideas to get them earning money are babysitting, mowing lawns, summer jobs, internships or even hiring them to work for your business.
Hire your child for the next couple of months to give yourself a business deduction and a way to fund retirement for your child….keep the net pay and fund an IRA for them. Under a certain amount of income, there will not even be an income tax associated with their wages. Also, under a certain age, they are exempt from FICA…so hiring your child can be a great idea on several levels.
