Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (12) | Ignore Thread Prev | Next
Author: NaggingFool Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120807  
Subject: Re: Want to give sister retirement and/or down p Date: 5/24/2004 8:33 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 6
Phil has good points. Keep the money in your name, or maybe fund her IRA with it. Whether or not it's community money may be the least of your problems.

4. She has to have income equal to the amount contributed to the IRA. She has worked in the past but is now working for her fiance and I'm not sure exactly how it's all getting reported. I don't think this is an issue but something to be careful with.

If she does get married this year she will probably be eligible to make a full contribution to an IRA. If she doesn't have enough earned income then her husband's income can count. (If he doesn't have over $6000 in earned income then I'd say he's definitely cheating on his taxes.)

- Can't be touched for purposes other than downpayment or retirement (or any of the other allowed IRA distribution).

Keep in mind that contributions to Roth IRAs may always be withdrawn, so this may not be the best way to protect the money from your sister. On the other hand most people don't know that, so you could probably decieve her about it.

Perhaps you could put the money in something confusing like I-bonds? If she's not likely to know how to get at it then it's somewhat safe?

There may be some rigamarole where you and your parents could give her the money now, and then borrow it back from her to be offered at the time she needs it, but I have no idea how/if that would work.

529 plans are transferable, so you could open one for her that could then be transfered to the children (but this doesn't help you with the downpayment thing).

Personally I'm a big fan of the idea that gifts shouldn't come with strings. If you want to give money to your sister, give money to your sister. Otherwise set it aside in case she needs help later.

Best wishes to you and your sister!
- Megan
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (12) | Ignore Thread Prev | Next

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
2013 Feste Award Voting Begins!
Who will win the 2013 Feste Award? Vote now for the Fool that most exemplifies the Fool Community mission of Learning Together!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Tax Strategies

TMFPMarti-Feeling Good
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement