Was asked today how old someone has to be to contribute to an IRA. If they have to be 18? All I can find is they have to have income from wages or SE income and be under 70 and half. Cannot find anything about a minimum age so assume a 16 or 17 year old can contribute to one if they have income. First I've ever been asked this question.
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There is no minimum age for IRA contribution eligibility. The person simply has to have earned income. I have many clients whose children have summer or part-time jobs and contribute 100% of their earnings to an IRA ... actually to a Roth IRA in those cases.Roland Slugg
"I do what I can." -
Yep, the requirement hinges on earned income, not age. If a baby is chosen for paid modeling work, it'd be possible to make IRA contributions on the basis of that money. The same applies for children who are bona fide employees in their parents' businesses, such as kids who work in family restaurants or provide basic janitorial services in small offices. As long as the pay is appropriate for the work, the earned income is legitimate, and it may be used as the basis for IRA contributions.--
James C. Samans ("Jamie")Comment
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Actually, they cannot make a contribution for the year in which they turn 70.5, for a regular, traditional, deductible IRA.Originally posted by Bonnie View PostComment
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