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My 5 year old son has an UGMA account (I am custodian) which is up to $60,000. It consists of stocks and an Index fund. However, he (I) gets hit with a tax bill every year. Is there a way to convert some/all of this into a Roth or other tax deferred account? Would this be a good idea? Also, with the Roth, if it is not used for education, what happens to it? (He is an only child).
Thanks!
Elaine Bush
Carmel, CA
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My 5 year old son has an UGMA account (I am custodian) which is up to $60,000. It consists of stocks and an Index fund. However, he (I) gets hit with a tax bill every year. Is there a way to convert some/all of this into a Roth or other tax deferred account?

No. To make Roth contributions one must have earned income, e.g. wages.

TMF ExRO
Phil Marti
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Thanks very much for the clarification.

One more quickie....about my own portfolio.....
One of the team leaders on the Retirement Seminar advised that I would be better off with a Roth IRA (for myself) BEFORE maxing out my 403b(7) contributions. This is contrary to advice I have received in the past.What is your opinion?
Thanks, again,
Elaine
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One of the team leaders on the Retirement Seminar advised that I would be better off with a Roth IRA (for myself) BEFORE maxing out my 403b(7) contributions. This is contrary to advice I have received in the past.What is your opinion?

It's not an issue I've thought about, so I don't have an opinion worth hearing. Sorry.

TMF ExRO
Phil Marti
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