Roth IRA for Undocumented Parents?

Hi everyone!

I'm a new investor and have been using stocks for short-term and 401k and Roth IRA for my retirement planning. I was wondering if it would be possible to set up a Roth IRA for my undocumented parents who have a U.S. SSN in the U.S. and report taxable income in the U.S.?

Also if something were to happen where they retired outside of the U.S., would they be able to withdraw the funds?

If anyone has any experience on this topic, please let me know. Thank you!

IRA requirment is to have some sort of Income and IRS doesn't care if the IRA owner is foreigner or not. Mandatory withholding will apply if the funds are withdrawn by NRA or those with foreign mailing adresss. The withholding should be different based on the IRA owner's country of Origin and the treaty with US. If not available, its mandatory 30% withholding. This will be the form W8. However, most FI will assume customer is US citizen if you provide them with SSN and US Mailing address. Its not their job to determine the customer's legal presence in US.

As for Roth, they need have some sort of an income and contribution must be made by post tax fund. Remember that funds from the Roth Ira account can be only taken out penalty free, if theowner is 59 1/2 or older and after 5 Years has passed from the first contribution year.

Bit Long, but hope this help!

That was helpful, thank you!

I was just wondering if your parents get US bank accounts and have the IRA withdrawals go there? And they use their debit cards/checks in their home country?