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Parent funding a Child Traditional IRA

Forum|Forum|3 years ago
March 20, 2023
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If I as a parent create and fund a Traditional IRA for my 18yr old child, who has earned income of $13,000+ on a W2, would my contribution act as a deduction for my income?

IRA

Best answer by AnnetteB6

No, regardless of how the Traditional IRA is funded (whether by you or by the child's own income), the deduction would be reported on your child's tax return if a contribution is made.

A

AnnetteB6Answer

No, regardless of how the Traditional IRA is funded (whether by you or by the child's own income), the deduction would be reported on your child's tax return if a contribution is made.

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fanfare

Employee

your child will be much happier in retirement with their retirement money in a self-directed Roth IRA instead of a Traditional IRA that is taxed and also making their Social Security taxed.

@x2aron