Roth IRA for minor (Backdoor?) - Income limit

Retirement Accounts and Strategies
1

Hi,

My 4 year son will be making about $8k this year doing some modeling gigs and I would love to max out his Roth IRA. Do I have to do a backdoor roth for him since my wife and I will be over the income limit or is it safe to transfer $7k directly into his roth account since he is a minor.

Does any of this have to be reported on our taxes.

Thanks,

Eddie

2

Thanks for the question. We answered on the Directed IRA podcast recorded on 3/27/24. It should be up in a couple of days on all podcast apps and Mat’s youtube (@matsorensen). You can submit questions re self-directing or retirement planning at www.directedira.com/podcast.