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fight the future
Master of my domain.
Member since 3/10 2067 total posts
Name:
Rebecca
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Is my brother eligible to open a retirement savings account?
I don't know much about these accounts -- but my brother works off the books during the summer for a landscaping company and then goes to school full-time during the school year.
I told him he should open a retirement saviings account now -- but I didn't know which to tell him to use or if he's even eligible?
Do you have to show proof of income or anything for these things?
Can he just walk into a bank with X-amount of money and open one of these things?
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Posted 2/17/11 8:05 PM  |
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Long Island Weddings
Long Island's Largest Bridal Resource |
Cheeks24
Living a dream
Member since 1/08 8589 total posts
Name:
Cheeks
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Re: Is my brother eligible to open a retirement savings account?
Yes.
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| Posted 2/17/11 8:31 PM |
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nov04libride
big brother <3
Member since 5/05 14672 total posts
Name:
Me
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Re: Is my brother eligible to open a retirement savings account?
I started a Roth IRA while in college.
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| Posted 2/17/11 8:44 PM |
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queensgal
Smile
Member since 4/09 3287 total posts
Name:
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Re: Is my brother eligible to open a retirement savings account?
Roth is better than traditional for him.
With a roth, you don't pay taxes on the money when you take it out - since he isn't paying taxes now, he benefits.
traditional IRA will be taxed when he takes the money out.
Also, with a roth, you can take out your original investment at any time with no penalties - also good since he is young and maybe will need access to the money (i.e. to buy a home)
Fidelity has good ones - just log into the website.
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| Posted 2/17/11 9:02 PM |
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muffaboo
LIF Adult
Member since 12/10 3797 total posts
Name:
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Re: Is my brother eligible to open a retirement savings account?
Posted by queensgal
Roth is better than traditional for him.
With a roth, you don't pay taxes on the money when you take it out - since he isn't paying taxes now, he benefits.
traditional IRA will be taxed when he takes the money out.
Also, with a roth, you can take out your original investment at any time with no penalties - also good since he is young and maybe will need access to the money (i.e. to buy a home)
Fidelity has good ones - just log into the website.
ita. i started my Roth when I was in H.S.
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| Posted 2/17/11 9:06 PM |
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Mrs213
????????
Member since 2/09 18986 total posts
Name:
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Re: Is my brother eligible to open a retirement savings account?
yes in face he can do it right online...
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| Posted 2/17/11 10:16 PM |
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Peaches77
LIF Adult
Member since 1/10 993 total posts
Name:
Me
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Re: Is my brother eligible to open a retirement savings account?
One of the qualifications to open a Roth IRA is that he has "earned income" in order to make a contribution to a Roth IRA.
Since you indicated that he does work, but it is off the books, then he cannot open a Roth IRA unless he reports this income on his tax return as income.
See Chapter 2 of the IRS Publication 590, Individual Retirement accounts, for more information on qualifying for contributions to retirement accounts.
Retirement Accounts
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| Posted 2/17/11 11:56 PM |
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fight the future
Master of my domain.
Member since 3/10 2067 total posts
Name:
Rebecca
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Re: Is my brother eligible to open a retirement savings account?
Posted by MrsC2009
One of the qualifications to open a Roth IRA is that he has "earned income" in order to make a contribution to a Roth IRA.
Since you indicated that he does work, but it is off the books, then he cannot open a Roth IRA unless he reports this income on his tax return as income.
See Chapter 2 of the IRS Publication 590, Individual Retirement accounts, for more information on qualifying for contributions to retirement accounts.
Retirement Accounts
So he IS NOT eligible to open a Roth IRA.
Is there something comparable he COULD open?
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| Posted 2/18/11 10:26 AM |
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Peaches77
LIF Adult
Member since 1/10 993 total posts
Name:
Me
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Re: Is my brother eligible to open a retirement savings account?
You have FM.
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| Posted 2/18/11 10:42 AM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14007 total posts
Name:
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Re: Is my brother eligible to open a retirement savings account?
You need to have earned income to open either a Roth or an IRA...meaning you need W2 income.
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| Posted 2/18/11 10:46 AM |
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