Isaac Lee

Building tools for parents to secure their child’s financial future.

[Isaac Lee @Isaac0370]

@ankurnagpal Thanks again for digging in. I’ve followed your work for a long time and really value your perspective. Happy to connect and go deeper if helpful.

[Isaac Lee @Isaac0370]

@ankurnagpal Thanks for the thoughtful question, Ankur. Really appreciate it. I’m Isaac, co-founder of Halfmore. Here's how I approach it.

[Isaac Lee @Isaac0370]

@ankurnagpal At scale, this has the potential to unlock trillions in retirement savings for American families while creating a meaningful impact on how kids learn about money and on what families can build together over time.

[Isaac Lee @Isaac0370]

While high-net-worth families have used this strategy for years, it’s been out of reach for most due to the complexity of the legal and costly administrative process. We’ve built Halfmore to make it accessible, giving more families a way to teach financial responsibility while building long-term savings in vehicles like custodial Roth IRAs.

[Isaac Lee @Isaac0370]

@ankurnagpal 3. To remain compliant, families must complete all required documentation: I-9s, W-2s, timecards, employment agreements, and payroll filings. This is not a workaround. It’s a recognized structure with clear legal precedent.

[Isaac Lee @Isaac0370]

@ankurnagpal 2. The child must perform age-appropriate, bona fide work, and the wages must be reasonable and in line with the services provided, similar to what you’d pay a third-party provider for the same tasks.

[Isaac Lee @Isaac0370]

The legal basis for this approach is clear and well-established in IRS guidance: 1. Under IRS Publication 926 and Revenue Ruling 2010-4, parents can hire their own children under age 21 to perform legitimate household work, including childcare, lawn care, cleaning, cooking, etc. When done correctly, this qualifies as household employment.

[Isaac Lee @Isaac0370]

@ankurnagpal At a high level, our aim is to give parents the power to build a strong financial foundation for their children and do it in a way that’s fully compliant, transparent, and sustainable.

[Isaac Lee @Isaac0370]

@GregDNeilsen Thanks for the great question Greg! We do payroll processing for our customers as well!

[Isaac Lee @Isaac0370]

If you contribute $7k/year to your kid's Roth IRA starting at 7yo, they will retire with $5M+. But to do it legally you need to hire a lawyer, run payroll, document their work, report taxes, and stay compliant.

Or you can use Halfmore for $15.99/monthIf you contribute $7k/year to your kid's Roth IRA starting at 7yo, they will retire with $5M+. But to do it legally you need to hire a lawyer, run payroll, document their work, report taxes, and stay compliant.

Or you can use Halfmore for $15.99/month.

[Isaac Lee @Isaac0370]

@chrisjuliencpa Thank you very much Chris! Please let me know if you have any questions about Halfmore. You can also find more information on https://t.co/mZDJYcuI03 Thanks!

[Isaac Lee @Isaac0370]

@NateHammertown Thanks for the question! Family employment arrangements are completely legal. We ensure all arrangements are properly structured and documented to meet IRS requirements. Hope this helps!

[Isaac Lee @Isaac0370]

@MerlinCrabapple Great question! We enable children to earn income through household tasks. We create a family employment arrangement so you can hire your child for household tasks just like you would hire a nanny. Hope this helps!

[Isaac Lee @Isaac0370]

@Levered_Beta Thank you! We enable child to become a W-2 earner by doing household tasks. Hope this helps!

[Isaac Lee @Isaac0370]

@lexzovo Great question! While there is no age restriction, we hear from our customers that 4-5 is when they can start having conversations with their child and assigning little chores like pet feeding or plant watering. I hope this helps!

[Isaac Lee @Isaac0370]

If you contribute $7k/year to your kid's Roth IRA starting at 7yo, they will retire with $5M+. But to do it legally you need to hire a lawyer, run payroll, document their work, report taxes, and stay compliant.

Or you can use Halfmore for $15.99/month.

[Isaac Lee @Isaac0370]

Thank you, Jim. Great question!

1. If a child is hired by their parent as a household employee, they are exempt from FICA and FUTA taxes.
2. Your child can legally work at home to generate additional income, allowing them to contribute more to their Roth IRA and maximize the benefits of tax-free compound growth.

Many of our small business owner customers initially handled this through their existing business or LLC but now leverage our service to streamline the process. Hope this helps!

[Isaac Lee @Isaac0370]

Great point, Eleanor! According to the US Department of Labor, children under 14 can work as actors, homeworkers, or in “their parents' businesses.” Halfmore enables parents to hire their children for household tasks, similar to hiring a nanny so that they can generate an income and start saving through Roth IRA. Hope this helps!

[Isaac Lee @Isaac0370]

@mc_ees @Tsizzle244 We enable users to contribute to Roth IRAs through trusted partners like Fidelity and Charles Schwab, ensuring their investments are secure and insured.

[Isaac Lee @Isaac0370]

You are right, David. But what’s cool is that even modest investments can have remarkable results: investing just $50-100 monthly from age 8 to 18 in a Roth IRA, assuming an 8% average annual return, could grow to over $165,000 by age 60. This significantly exceeds the average retirement savings of Americans. And we hope all families can benefit from this strategy.

[Isaac Lee @Isaac0370]

Great question, David. According to the US Department of Labor, children under 14 can work as actors, homeworkers, or in “their parents' businesses.” Halfmore enables parents to hire their children for household tasks, similar to hiring a nanny so that they can generate an income and start saving through Roth IRA. Hope this helps!

[Isaac Lee @Isaac0370]

@Nostradonny Thank you for your comment! Your child would need to pay required taxes before contributing to a Roth IRA. So, no it’s not. Hope this helps!