Show HN: employkids – Hire your kids so they can retire millionaires (legally)
10 days ago
- #Roth IRA for kids
- #Parenting hacks
- #Financial planning
- Kids can start a Roth IRA early, with contributions up to $7,500 annually, growing tax-free at ~7%.
- Children must have earned income to contribute; parents can hire them for household or business tasks at fair rates.
- Proper documentation (employment agreements, time logs, tax forms) is crucial to avoid IRS penalties.
- Services like 'Employ Kids' simplify setup, tracking, and compliance, offering task suggestions and automatic documentation.
- Business owners can employ kids through their business, deduct wages, and save on payroll taxes.