Individual age 19 in 2019 is a full time student has $ 3500 salary and $ 3000 capital gains income.
He files his own tax return because about $200 income tax was withheld from his salary. Also he is
shown as a dependent on his parent's return but obviously there is no exemption deduction now.
His parent made about $500,000 in 2019, therefore is better for the 19 year old to file his
own tax return for his parents to avoid tax on his $ 3,000 capital gains. The investment account
is in the name of the 19 yr old with his SS number.
1. Can the age 19 individual contribute $ 3,500 to a Roth IRA for year 2019 before july 15, 2020.
The result is he can put this money to invest without tax consequence.
2. Can he contribute $ 6,000 to the same Roth IRA instead of $ 3,500? Or there is no tax benefit to do so.
3. Is there a penalty if he contributes more than $ 3,500 to the Roth IRA