Reply to How much financial help are you really giving your adult children?

Forum Index » Adult Children

Reply to "How much financial help are you really giving your adult children?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]How are you alll funding ROTHs for your children. Isn’t that illegal?[/quote]

You can gift anyone $19K/year, so can your spouse.  That's $38K/year.  The kid can use it however they want---we gift it to our kids with the intention they use it to fund their ROTH Iras (and once they have a 401K, to fund that as well).

However, they can only fund the IRA up to the point they also have earned income (and then obviously not over $7K). 
[/quote]

You can give anyone any amount, it’s just that over $19k you have to count it toward your lifetime exemption, which is currently about $14m. [/quote]

Ok, that is technically correct.

And for those of us who will have estates over $14M each ($28M as a couple), one key part of financial planning is to find ways to Spend down your wealth without having tax implications.  Gifting the yearly Max that doesn't count towards your lifetime exemption is one key way to do that.

Once a kid has a spouse and 2 kids, that is $152K per year we can technically give each of our kid's and their families without any tax implications (now or later).

So we can clear $304K per year out of our estate potentially in the future without any tax implications for any one involved.  It only helps a little bit, but will save our kids from having to pay 50% on taxes when our estates are settled
[/quote]
you can also pay any amount on behalf of anyone to an educational or medical facility [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics