In this episode of Wealth Breakdown, we explore a powerful yet often overlooked strategy that allows business owners to legally pay their children, reduce their own taxable income, and build tax-free wealth for their kids.

We break down a real-life case study featuring Jim, a business owner who pays his 12-year-old twins to do legitimate work in his company. This simple move could result in over $2 million in tax-free retirement savings for each child, thanks to Roth IRAs and the power of compound growth.

Whether you're a small business owner, entrepreneur, or financial advisor, this episode delivers actionable insights that can help you make smart, compliant financial moves to benefit the next generation.

🔑 Key Takeaways:

• Why paying your kids through your business can be a win-win
• How to stay compliant with IRS rules
• What types of work are appropriate and legally justifiable
• How to use earned income to contribute to a Roth IRA
• The long-term benefits of tax-free compound growth
• Pitfalls to avoid and how to set things up the right way

With the right structure, you can start building long-term, tax-free wealth for your kids, while also enjoying some tax advantages for your business.

📊 Resources Mentioned:

• IRS Standard Deduction Guidelines
• Roth IRA Contribution Rules
• Time Value of Money & Compound Interest Calculators
• Consult a qualified CPA for personalized advice

🎧 Who Should Listen?

• Small Business Owners looking for legal tax strategies to lower their taxable income
• Parents and Entrepreneurs who want to build tax-free wealth for their children
• Financial Advisors & Tax Professionals seeking creative solutions for their clients
• New Business Owners exploring smart ways to leverage family labor
• Anyone interested in generational wealth, Roth IRAs, or long-term tax planning

Blog Post and Transcription: https://www.bloomwoodcapital.com/post/how-business-owners-can-legally-pay-their-kids-and-build-tax-free-wealth Contact Us: https://www.bloomwoodcapital.com/contact Wealth Breakdown Podcast - Apple: https://podcasts.apple.com/us/podcast/wealth-breakdown/id1778522619 Wealth Breakdown Podcast - Spotify: https://open.spotify.com/show/098AWkahqNVjjAm8Ya71bP?si=edb92b294886438a Linkedin: https://www.linkedin.com/in/billy-amberg/ Facebook: https://www.facebook.com/profile.php?id=100069639591247 X: https://x.com/billzamberg Youtube: https://www.youtube.com/@bloomwoodfp Disclosures: https://www.bloomwoodcapital.com/smdisclosures