I assume this would count as a gift and if you exceed $15K total for the year (I believe is the current amount) you would have to file a form for the excess. No direct tax on it, it just reduces your eventual lifetime estate exemption.
I meant this as a caution, not a recommended option. But the bolded part is the same thing as I was suggesting. I'm not sure why you disagree with what I put yet suggest the same thing by a different term.I don't see this part as the best option.
Yes, you can gift an Early Inheritance but that requires specific tax forms to be filed and years of maintaining the documentation. The two earlier suggestions to: keep the amount below the current annual gift limit, or; file a form for the excess gift amount with the current year's taxes; are the cleanest and simplest methods.
What I do for my son is gift him money, and request he put it towards that IRA.
I meant this as a caution, not a recommended option. But the bolded part is the same thing as I was suggesting. I'm not sure why you disagree with what I put yet suggest the same thing by a different term.
Is there a way I can setup and contribute to an IRA for my son?
He is 26yo but struggling.
I would like to do this for him.
I'm either confused by what your saying, or you're confused by what I'm saying, or both. I suspect we're trying to say the same thing, more or less. I'm not sure why you are using the term Early Inheritance for my post since I never used it, and it seems to have some meaning to you that I didn't intend.I guess we each interpreted the OP's question differently.
I agree that your recommendation to treat it as an Early Inheritance is the best solution IF the OP is planning to contribute one or a few large sums to quickly fund the IRA.
I interpreted the question as how to fund an IRA via a longer term series of smaller cash infusions. In this scenario keeping the money amounts below the taxable limits to avoid taxes, or only slightly above the limits and file each tax year, appear to be the better methods by eliminating the need to archive tax records for potentially decades.