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Financial Planning / Tax Strategies


Subject:  Re: Uncharted waters Date:  10/9/2012  5:08 PM
Author:  foo1bar Number:  116772 of 129658

Of course, if you want to maximize the benefit your daughter gets from her income, you should consider your out-of-pocket expenses as a gift to her. She'll report more income and can make a larger contribution to her Roth IRA.
I agree - up until she starts making enough that she has to pay taxes. (at which point you have to ask yourself if she's better off paying the taxes now on that money, and putting it into the Roth - or not paying taxes on it, and claiming the expense.)
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