A lot of advice, much of it bad advice, is circulating about putting your children on your payroll, paying them $X, and then putting the funds in a retirement account.
Much of this advice is bad advice.
IRS standards: REAL WORK FOR REAL WAGES
The work has to be legitimate and age appropriate, and the wages have to be market rate.
Can this be legit? Yes. Is there a lot of hot air and blue sky here? Yes.
Notice and Disclaimer: This blog is designed to provide accurate and authoritative information for education purposes only. This blog is not an attempt to provide legal, accounting or financial planning advice, such advice should always be obtained from licensed, certified and/or qualified professionals.
Readers should be aware this is a dynamic area; professional advisors and reference sources should be consulted regularly for updates. Sources for state and local laws should be consulted when necessary.
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