In "Home Business Tax Savings MADE EASY!" (Ch.6)
I describe LOTS of advantages of employing your minor
children in your home-based business, and exactly how to
bullet-proof your tax deductions for doing it.
Now here is another reason: Roth IRA.
An amount up to $5,000 or your child's total 2009
earned income (whichever is lower) may be contributed
by the child or by you into a Roth IRA.
Look at this example:
If your 15 year old put $5,000 into a Roth IRA this year, --
then did nothing else, ever -- that $5,000
will be worth about $200,000 by full retirement age (assuming 7% growth).
Now, imagine hiring your kids when they're as young as 7,
and putting a little of their earnings into an IRA this year,
and a little more each year. By the time they are 21,
they could have a million dollar retirement nest egg already funded.
