Yes, your child’s Roth IRA account remains intact and under your control even if you stop subscribing to Mora. You’ll lose access to our payroll and compliance tools, but you can continue managing the account directly with your chosen custodian.

Yes, you can transfer a Roth IRA to a different custodian at any time through a process called a trustee-to-trustee transfer. Mora can guide you through this if you decide to make a switch.

Roth IRA balances are not reported as assets on the FAFSA, which helps preserve eligibility for financial aid. However, withdrawals from the account may be considered income and could impact aid calculations. Mora can help you plan strategically.

Definitely! Once your child is an adult, they can continue contributing to their Roth IRA as long as they have earned income and stay within the IRS limits. This is a fantastic way to keep building their financial future.

Yes, contributions to your child’s Roth IRA can come from anyone, as long as the total contribution doesn’t exceed your child’s earned income for the year or the annual IRS limit. Grandparents or other family members can gift funds for this purpose.

The Roth IRA account is owned by the child. As a parent, you serve as the custodian until your child reaches the age of majority (typically 18 or 21, depending on your state). After that, the child gains full control of the account.

Absolutely! Our support team is here to help. You can reach us via chat, email, or phone. Visit our Contact Us page to get in touch or schedule a consultation with one of our experts.

With a Roth IRA, you can invest in a variety of assets, including stocks, bonds, ETFs, mutual funds, and more. Some custodians may even allow alternative investments like real estate or cryptocurrency. Mora can guide you in choosing a custodian that fits your investment goals.

Yes, a Roth IRA is tax-free when used correctly! Contributions are made with after-tax dollars, and both growth and withdrawals are tax-free if taken after age 59½ and the account has been open for at least five years. Just be sure to follow IRS rules.

Yes, contributions to a Roth IRA can be withdrawn anytime without penalties or taxes. However, earnings on the investments are subject to taxes and a 10% penalty if withdrawn before age 59½, unless they qualify for exceptions like first-time home purchase, education expenses, or disability.

Mora’s services include payroll, compliance, audit defense, and investment tools for a flat monthly or annual subscription fee. We keep our pricing transparent and affordable to make it easy for families to get started. For detailed pricing information, visit our Pricing Page or contact us directly.

If you’re hiring your child through your family business and they’re under 18, they are generally exempt from Social Security and Medicare taxes. However, federal income taxes may still apply if their earnings exceed the standard deduction. Mora helps you navigate these rules and handle payroll tax compliance.

Mora Audit Defense is our comprehensive support service designed to protect you in case the IRS audits your child’s Roth IRA or earned income. We provide detailed documentation of your child’s work, payroll records, and task descriptions to ensure compliance with tax regulations. If you’re audited, our team will guide you through the process, giving you peace of mind.

For 2024, the maximum contribution to a Roth IRA is $7000 or your child’s total earned income for the year—whichever is less. This limit may change annually based on IRS adjustments for inflation, so it’s a good idea to stay updated.

Mora provides tools and guidance to help you create real, age-appropriate work opportunities for your child. We streamline payroll, ensure tasks are properly documented, and help you establish fair market rates for their work. This way, you meet IRS standards and make the process stress-free. We also provide templates, compliance support, and documentation in case of an audit.

Unfortunately, Roth IRAs are only available to individuals with earned income in the United States who have a Social Security Number or Taxpayer Identification Number (TIN). If you're not a US resident or citizen, Mora's specific services may not apply, but feel free to contact us to explore alternative options that might work for your situation.

A Roth IRA is a retirement account that allows contributions with after-tax dollars. The money grows tax-free, and withdrawals in retirement are also tax-free, as long as certain conditions are met. Contributions can be withdrawn anytime without penalty, making it a flexible option for long-term savings. For children, Roth IRAs are a great way to set them up for financial success early.

Not at all! Thanks to the power of compound growth, even small contributions can grow significantly over time. For example, investing just $6,000 annually from ages 8 to 18 could grow to over $2 million by the time your child is 65, assuming a 7% annual return. The earlier you start, the more time their investments have to grow.

To contribute to a Roth IRA, your child must have earned income—money they’ve received for work they’ve done. The income must be verifiable and meet IRS guidelines. This can include household chores or tasks for your family business, as long as they’re age-appropriate, paid at a reasonable market rate, and properly documented. Mora helps you meet this requirement by streamlining payroll and providing compliance support.

Yes you can. Trusts, Banks and Custodians such as Schwab or Fidelity offer Roth IRA for kids. This is the DIY option, and while its certainly possible, you’ll be responsible for structuring, documentation, archiving and payroll records for each child. It may also cost significantly more once you factor in time spent with CPAs / Tax attorneys to set this up.

Around 11% of Americans have IRA accounts. There are over 15.3 million IRA accounts at Fidelity alone, most of which are Roth IRAs. There isn’t good data available on how many of these IRA accounts are for kids, or were setup when the account owner was a child by their parents. A safe estimate would be these are in the millions.