Can a minor contribute to an IRA?
| As long as the child has earned income, he or she can
contribute to a minor IRA. It can be opened as a Traditional or Roth IRA,
and the maximum contribution is $5,000 or 100% of earned income, whichever
is less. To establish a minor IRA, the account must be opened and held by
an adult, as guardian, in the name of the minor. While the adult is the
individual authorized to perform transactions on the account, the minor is
considered the registered owner for tax purposes. |
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