Roth IRA Giving 1
I’m Miriam Neff and I’m Valerie Neff Hogan with Wise Women Managing Money.
M One of our favorite quotes is ‘do your giving while you’re living, knowing where it’s going.’ That means give with a warm hand. One of our favorite ways is by opening a Roth IRA for children and grandchildren.
V There’s great tax advantage as inheritances are usually taxed. If you are self-employed, that inheritance might be 40% to Uncle Sam, ouch! There are restrictions on contributions based on that person’s income or as a single or couple. Currently, you can gift cash into that Roth IRA and the owner can withdraw funds beginning at age 59 and a half.
M Another benefit is the connection of communication, explaining why you wish to gift, and observing that person’s money management.
