Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Gift a Roth IRA? Bad Idea?
Old 02-18-2014, 08:11 AM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 14,328
Gift a Roth IRA? Bad Idea?

My step daughter is getting remarried this summer. She has stated that they have enough "things" but would welcome cash gifts. I have been trying for years to get her to start investing for her own retirement (she is 37).

Would gifting her a Roth IRA be a bad idea?
travelover is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 02-18-2014, 10:01 AM   #2
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Posts: 4,366
I did that with DS after he finished college ahead of plan. I gave him $10k for two year's worth. He actually did get it into a new Roth account at Fidelity, as contributions for two years. Then, about six months later, he looked at it and realized he actually had to buy something with the cash! It wasn't like his 401k account at work. So he finally bought into a target retirement fund I believe. At least that's the story.
Animorph is offline   Reply With Quote
Old 02-19-2014, 06:46 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
donheff's Avatar
 
Join Date: Feb 2006
Location: Washington, DC
Posts: 11,317
I have been putting a couple of thousand into a Roth I set up for my 27 YO daughter for a few years. She is fully funding her work 401K but not otherwise saving at this point. The Roth seems a better destination for gifts than a taxable account.
__________________
Idleness is fatal only to the mediocre -- Albert Camus
donheff is offline   Reply With Quote
Old 02-19-2014, 11:19 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 14,328
Quote:
Originally Posted by donheff View Post
I have been putting a couple of thousand into a Roth I set up for my 27 YO daughter for a few years. She is fully funding her work 401K but not otherwise saving at this point. The Roth seems a better destination for gifts than a taxable account.
Thanks. My hope is that the money will stay in the Roth as opposed being used for a vacation or electronic toys. It seems a little presumptive of me to tell her how to spend the money, but then again, she has not gotten into the savings habit.
travelover is offline   Reply With Quote
Old 02-19-2014, 11:37 AM   #5
Moderator
sengsational's Avatar
 
Join Date: Oct 2010
Posts: 10,653
I opened one for each daughter in the year they started making money (federal work study and a catering thing, both during full time college, so minimal real bucks). Put it into a total market index and turned off paper statements (not Vanguard because the minimum was too high). They could technically sell, but I doubt they will, since it's a retirement account, AND, they hate to hear me say "I told ya so".
sengsational is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Roth IRA Conversion: Good Idea?? Relaxed Cajun FIRE and Money 19 03-05-2013 01:52 PM
converting IRA to Roth IRA based on new Roth Rules vs. 72t mbmmccoy FIRE and Money 27 09-28-2009 06:27 AM
Questions about limits surrounding ROTH IRA, SEP IRA and ROTH 401k RockSplat FIRE and Money 14 06-08-2009 12:30 PM
Can I max out my Roth IRA, Trad. IRA, and SIMPLE IRA? thefed FIRE and Money 9 09-24-2007 04:52 PM
my dog's idea of a nice gift bright eyed Other topics 3 05-04-2007 03:48 PM

» Quick Links

 
All times are GMT -6. The time now is 07:44 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.