Hiring Your Spouse & Kids: Big Opportunities and Big Mistakes to Avoid

The Red Zone Retirement Program · May 22, 2025 · 19m

Today, John's answering a question from a viewer about hiring a spouse, or children, in a family business. When structured properly, this strategy can create significant tax advantages and strengthen retirement savings. However, it also carries risks if not handled correctly. We'll break down the real pros, cons, and IRS guidelines around bringing your family onto the payroll.

Here's some of what we discuss in this episode:

0:00 – Intro

1:06 – Are there tax benefits to hiring your family?

2:43 – What qualifies as "real work"?

6:55 – Roth IRAs and earned income

10:06 – Insurance and education…