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Financial Disclaimer

Last updated: February 15, 2026

Not Financial, Tax, or Legal Advice

KidsBuild, Inc. is not a registered investment advisor, broker-dealer, financial planner, tax advisor, or attorney. Nothing on this website or within the KidsBuild platform constitutes financial advice, investment advice, tax advice, legal advice, or any other form of professional advice. All information is provided for educational and informational purposes only.

Hypothetical Projections

Growth projections and charts displayed on KidsBuild are hypothetical illustrations based on the following assumptions:

  • A 7% average annual rate of return, which approximates the historical average of the S&P 500 Total Return Index adjusted for inflation over the past 50+ years
  • Annual Roth IRA contribution of $7,500 (the 2026 IRS limit) made at the start of each year from ages 13 through 18
  • No additional contributions after age 18
  • No early withdrawals
  • Reinvestment of all dividends and capital gains
  • No account fees, trading costs, or fund expense ratios

Important Risks

  • Actual investment returns will vary and may be significantly higher or lower than 7%
  • Past performance of any index or investment does not guarantee future results
  • Investments can lose value, including the total loss of principal
  • Inflation, taxes, and fees may reduce real returns
  • Roth IRA contribution limits and rules may change in future tax years
  • The 7% figure is a long-term average; actual year-to-year returns can range from significant losses to significant gains

Roth IRA Requirements and Earned Income

Roth IRA contributions are subject to strict IRS rules. Parents should be aware of the following:

  • The account holder (child) must have "bona fide earned income" from employment or self-employment at least equal to the contribution amount.
  • Contributions cannot exceed the lesser of the annual IRS limit ($7,500 for 2026) or the child's total earned income for the year.
  • Earned income includes wages, salaries, tips, and net self-employment income. It does not include allowances, gifts, investment income, or interest.
  • The IRS may require documentation that the child performed legitimate work and received fair-market-value compensation. Activities must be real, productive, and age-appropriate.
  • If a child is self-employed (e.g., freelancing, selling products), they may owe self-employment tax on net earnings above $400.
  • KidsBuild does not verify earned income, file tax returns, manage IRA accounts, or provide tax preparation services. Session replay data and activity logs may serve as supporting documentation but are not guaranteed to satisfy IRS requirements.
  • Excess contributions (contributions exceeding earned income or the annual limit) are subject to a 6% IRS penalty per year until corrected.

Child Labor Law Considerations

Federal (FLSA) and state child labor laws restrict the types of work and hours that minors can perform. While computer-based and software development work is not a prohibited occupation under federal law, 14- and 15-year-olds face hour restrictions (no more than 3 hours on school days, 18 hours in school weeks). Many states impose stricter requirements. Parents are responsible for ensuring compliance with all applicable child labor laws in their jurisdiction. KidsBuild does not monitor or enforce work hour limits.

Consult a Professional

Before making any investment, tax, or employment decisions related to your child, consult a qualified financial advisor, tax professional, and/or attorney. Every family's situation is unique, and professional guidance is essential for ensuring compliance with IRS rules, child labor laws, and investment suitability.

Contact

Questions about our financial disclosures? Contact us at support@kidsbuild.com.