Winter Break Program
1417Power will employ your child age 14 or older for 5 to 80 hours during their winter school break. Your cost is an enrollment fee of $25 plus $25 per hour. Your child will be paid $18.50 per hour worked. The amount paid to your child will be reported by W-2 as wages. This allows you the parent to contribute up to the gross pay to your child’s Roth IRA. 1417Power pays the employer payroll tax for your child’s employment.
Hours worked |
|||||||
|---|---|---|---|---|---|---|---|
80 |
60 |
40 |
30 |
20 |
10 |
5 |
|
Gross pay |
$1,480.00 |
$1,110.00 |
$740.00 |
$555.00 |
$370.00 |
$185.00 |
$92.50 |
Roth IRA value* |
$175,800 |
$131,850 |
$87,900 |
$65,925 |
$43,950 |
$21,975 |
$10,988 |
Cost** |
$2,025 |
$1,525 |
$1,025 |
$775 |
$525 |
$275 |
$150 |
* Federal Law allowed depositing the lower of actual wages as reported on a W-2, or $5,500 to a Roth IRA. 1417Power RECOMMENDS deposited some or all the W-2 amount to a Roth IRA and allow that amount to compound until retirement. The Tax-Exempt wealth accumulated by age 70 (expected retirement age after 2035) presented herein is based a one-time deposit of the gross pay amount to a ROTH IRA that earns an annual average 9.25% rate of return. The value herein is a mathematical calculation; it is not a prediction or forecast. Past performance of a fund or index is not a predictor of future performance. Roth IRA savings are exempt for FAFSA reporting. You set up Roth IRA account at the brokerage of your selection and make the deposit. Using some of your child’s take home pay for the Roth IRA contribution is an excellent life lesson.
** 1417Power accepts credit card payment based on a 5% processing fee and a separate agreement.