Job For 3 Year Old & Roth IRA

[questions]

I have a child that is 3 years old and I would like to start a Roth IRA for them. In order to contribute to a Roth IRA, the money needs to be earned income. Is there any job that I can give my 3 year old so that it is considered earned income and can be placed in a Roth IRA?

[cheapdoggy]

I think I would look into a 529 for college instead

[moneybags]

You can get your child into modeling (depending on where you live). It is the only job I can think of for a 3 year old. My kids did this when they were little, and now they have Roth accounts growing!

[disneysteve]

Modeling is the only one that comes to mind for me, too. Now when your kid is older, like 12, and can start babysitting, that money could count. My daughter will be 12 this year and hopefully start babysitting and if she does I intend to have her open a Roth.

[moneybags]

My daughter will be 12 this year and hopefully start babysitting and if she does I intend to have her open a Roth.

For my own reference, do you know the rules of tracking this earned income? Will you have to file a tax return in order to record the income? I'm actually not crazy about my DD babysitting since she is busy with other activities, but if it comes about, I would be willing to do some sort of match for her (or fund it myself).

[disneysteve]

For my own reference, do you know the rules of tracking this earned income? Will you have to file a tax return in order to record the income? I'm actually not crazy about my DD babysitting since she is busy with other activities, but if it comes about, I would be willing to do some sort of match for her (or fund it myself).

I'm not sure, but I figured I'd get the details from my accountant when the situation arose. Since there wouldn't be any W-2 or 1099, we'd just have to keep a written log to document the income. That's what I had to do years ago when I did moonlighting work during my residency.