Employment contracts have their origins in very old master-servant laws. With no employment contract, you can better protect your child’s freedom and childhood.
You can find out if your child or other employee qualifies by reviewing your 401(k) plan document.
We continued to hire her for several of the same tasks as last year, but also added a few new ones.
While navigating the rules may be trickier, your child can still enjoy easy domestic employment even when someone else is the employer.
I would recommend that you strive to pay your children $0 in non-cash compensation. Let them purchase their own rewards.
On Friday, May 14, 2021, Megan Russell was interviewed by Michael Morton of Financial Planning for Entrepreneurs podcast.
This is a common confusion with Roth IRAs.
My favorite part of my daughter’s Roth IRA is that she has earned it all. I have seen her work hard, learn valuable lessons, and truly earn her wage.
On Monday, October 26, 2020, Megan Russell was interviewed by Sunny Burns and Sunmarie Burns of the FamVestor podcast.
Don’t let stress about tax filing requirements keep you or your child from a powerful opportunity to provide for their future.
I do not need to file Schedule H and imagine that most parent household employers also do not need to file this schedule.
My daughter was employed at her first job, earned her first income, and was able to fund her Roth IRA for the first time.
For domestic tasks like babysitting there are often two options: independent contractor or household employee. Taking the time to educate yourself on the difference may be worth your while.
There are many opportunities to pay your children. If that payment can be counted as earned income, then the child is eligible to fund their Roth IRA.
Someone has to be proactive about your child’s retirement and every year you don’t open a retirement account is another year you’re holding back compound interest.