Q. Why are thousands of parents choosing Halfmore instead of going straight to Fidelity?

To contribute to a Roth IRA, a child must have earned income from real work, not gifts or allowances.

Outside of child acting or modeling, one of the only IRS-approved ways for a minor to earn legitimate income is by being employed by a parent-owned business. But fewer than 10% of U.S. parents own a business.

That’s where Halfmore comes in. We make it possible for any parent to legally hire their child through a household employment relationship, unlocking a powerful wealth-building strategy that was once limited to wealthy families with their own businesses.

For the IRS to recognize this income, the child must be in a bona fide employment relationship with the parent.

That means meeting IRS standards around:

Age-appropriate earnings: Confirm that your child’s income aligns with IRS requirements.

Recordkeeping: Maintain proper records of the child’s income and contribution to the account.

Tax reporting: Ensure wages are properly reported to the IRS with W-2 forms.

Halfmore handles all of this for you from setting up IRS-compliant household employment to processing payroll, generating tax forms, and ensuring everything is above board.

Once the income is earned and documented, we securely transfer the funds to a Roth IRA at your preferred brokerage: Fidelity, Charles Schwab, or Vanguard. You keep control of the investment account, while we make the setup effortless.

In short: We make it legal, easy, and seamless for parents to help their children earn income, which is a prerequisite for a Roth IRA, so they can start building long-term wealth and maximize tax-free compound growth.