Giving with a warm hand Roth IRA # 1
April 12, 2018
I’m Miriam Neff-with STARTING OVER FINANCIALLY, and I’m Valerie Neff Hogan, and we’re here to talk about money
One of our favorite quotes is ‘do your giving while you’re living knowing where its 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 percent to Uncle Sam. Ouch. There are restrictions on contributions based on that persons income as a single or couple. Currently you can gift cash into that Roth IRA and the owner can withdraw funds beginning at age 59 1/2.
M Another benefit is the connection of communication, explaining why you wish to gift and observing that person’s money management.