I want to help my parents plan for retirement. Is it possible to gift them money for them to use in an IRA. They could contribute $4000. I was told that there is no gift tax for anything under $10K. Does this have tax implications for them and/or for me? I wouldn't be setting up the IRA, they would. Also, any suggestions as to what kind of IRA they should get? Parents are 51 and 44 and they don't have much of an income...Nice idea.There is no gift tax. You can give up to $10,000 per person per year with no gift tax. No tax problems for parents either. In fact they will get a tax deduction for the 4,000 that goes into an IRA. Remember they need earned income to qualify for the IRA.Sounds like they are not investors. I would go for an index fund. Each could take a different fund. Tell them not to worry if the market goes down, espically since you gave them the money and want then in the market. Do not go for any fixed income. The need is long term.
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