The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Education IRA||Date: 4/18/2000 9:11 AM|
|Author: hzengmar||Number: 34682 of 122853|
I contributed $500 to my son's Edu-IRA for year 2000. We just realized a capital gain in March which would put us over the $160000 AGI limit, assuming that we are luck enough to avoid significant capital loss later of the year. So I might have to withdraw the $500 and its earnings before April 15, 2001 from my son's Edu-IRA account.
My son is only three years old and does not need to file a return. Do I have to include the earnings of the $500 as our income on our joint return and pay capital gain tax on it or I don't have to report it at all? This is question #1.
Question #2: my son's grandparents have expressed interest in contributing to his Edu-IRA previously and their income is below the AGI limit. Are they allowed to contribute $500 to my son's Edu-IRA even though we could not to? If so, do they have to contribute to a seperate Edu-IRA account of his?
In practice, I could have given the grandparents $500 and ask them to contribute instead of me. Is this legal?
|Copyright 1996-2015 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|