Gifting Roth IRA’s
March 8, 2021
I’m Miriam Neff-with STARTING OVER FINANCIALLY, and I’m Valerie Neff Hogan, and we’re here to talk about money
M If you want to bless your children and/or grandchildren, consider helping them open a Roth IRA. Your dollar that has already been taxed can be gifted into that account for their retirement. At present 6,000 is the max. I wanted my family to become engaged in following the markets and learning.
V Mom, you succeeded. Know that restrictions may change. But consider this. If that account is opened at age 30 and you retire at age 68. If you were to earn a 7 percent annual return, that $6,000 annual savings would grow from the $222,000 total put in, to over $1 million. Wise move. And you withdraw it paying no taxes.