How to open a roth IRA for my kid

[Karina Ruiz]

Hi everyone! So I want to open a roth IRA account for my 4 y/o son. I did some research online and learned that any money deposited into the account has to come from my son's working income. From what I gather, acceptable examples of "income" can be from modeling jobs/photo shoots, or I can hire my son through my RE company (I suppose he can "help" clean up properties). Some articles stated that a simple ledger at home with the date, amount, and description of the job the child performed would be good enough for IRS purposes. But does anyone know how valid that is? And does anyone have any other examples of what qualifies for income/job for small children? Any recommendations on a CPA that can advise me on this? Thank you!!!

[Lance Lvovsky]

@Karina Ruiz

Your son would need to have earned income such as self employment or wage income. When hiring children in family owned businesses, it has to be reasonable for what an ordinary person would receive in compensation and the work has to be commensurate with that child’s abilities. I.e a 4 year old would not managing tenant relationships and could not get paid as such.