Very likely yes, and most definitely yes!
Your daughter will likely be able to open a Roth IRA, provided that the income she earned is reported to the IRS. If she is a minor, the account will need to be opened and managed by a custodian, typically a parent. There are limits and guidelines, such as not being allowed to contribute more than what is earned and reported, but those details should be reviewed with your tax advisor.
We think that Roth IRAs are a great idea. Investment growth and qualified withdrawals are tax free, benefits that make Roth IRAs even more valuable. In addition, her Roth IRA would not be subject to the mandatory withdrawal requirements that many other IRA accounts have once you reach a certain age.
This is also a great way to teach your daughter about the value of earning, saving, and the potential benefits from investing for the future! PSG manages Roth IRAs for clients of all ages. The power of long-term compounding and the tax advantaged benefits of a Roth IRA make this an excellent savings and investment option in our view.
Disclosure: All opinions expressed in this article are for informational and educational purposes and constitute the judgment of the author(s) as of the date of the report. These opinions are subject to change without notice and are not intended to provide specific advice or recommendations for any individual. The material has been gathered from sources believed to be reliable, however PSG cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. Some examples are hypothetical in nature and provided for illustrative purposes only; they are not intended to represent the result of any PSG client or predict actual results. PSG does not provide tax, legal or accounting advice, and nothing contained in these materials should be taken as such.