Qualifying earned income for 14 yr. old.

[Guest Rosie]

I would like to open a ROTH for my 14yr. old daughter. Can the money I pay her to do chores for me around the house count as earned income? If so does she need to file income tax forms? Without a W-2 form from an employer, I am lost.

[John G]

This topic has been covered from a number of different angles. See the below reference:

http://benefitslink.com/boards/index.php?showtopic=9429

Just a presumption on my part, but I doubt that the IRS will be paying much attention to a child's IRA. If the work is real rather than contrived, go ahead and do all the paperwork for employment. Keep records, pay taxes, file returns, etc. You may want to consider the educational IRA as an alternative at $500/year.