My 14yo daughter has her first job this summer... but it's not a typical wage job - she's being paid as a contractor and will receive a 1099 from her employer at the end of year. We are going to open a Roth IRA account to contribute to, but it's unclear to me what the contribution limit would be.. she definitely will not be earning the $7000 contribution limit, and she has to pay medicare/SS herself when she goes to file taxes this year.
Is the sum of her checks being received by the employer considered her IRA contribution maximum? Or is it minus the 15.3% employment taxes?
Is the sum of her checks being received by the employer considered her IRA contribution maximum? Or is it minus the 15.3% employment taxes?
Statistics: Posted by spaddlewit — Mon Jul 08, 2024 9:13 pm — Replies 8 — Views 582