housepicks Posted February 13, 2019 Report Share Posted February 13, 2019 Can I open them up for my minor children? Quote Link to comment Share on other sites More sharing options...
MadTiger Posted February 13, 2019 Report Share Posted February 13, 2019 Yes. Open them at any place. Fidelity, or Schwab https://www.schwab.com/public/schwab/investing/accounts_products/accounts/ira/custodial_ira Quote Link to comment Share on other sites More sharing options...
cyberbabble Posted February 13, 2019 Report Share Posted February 13, 2019 The deposits to the IRA must be earned income from the IRA owner.If the kids have jobs you can give them money up to the amount they earn from jobs. Quote Link to comment Share on other sites More sharing options...
IAG Posted February 13, 2019 Report Share Posted February 13, 2019 My dad opened and funded a traditional IRA for, me and I didn’t fund any of it. That was quite a while ago though, laws may have changed. He did everything by the book, so there must be or must have been a way at some point. Quote Link to comment Share on other sites More sharing options...
housepicks Posted February 13, 2019 Author Report Share Posted February 13, 2019 The deposits to the IRA must be earned income from the IRA owner.If the kids have jobs you can give them money up to the amount they earn from jobs. So unless they are old enough to have a job...no ira? Quote Link to comment Share on other sites More sharing options...
milwaukee mike Posted February 13, 2019 Report Share Posted February 13, 2019 So unless they are old enough to have a job...no ira? no ira and no roth ira unless they have EARNED INCOME i have had clients pay their kids $5000 for cutting the grass, and put it in the ira... that always seemed silly to me, because the kid still has to pay self-employment taxes on it ($700) if anyone here is gonna do that, put the money in a ROTH IRA, because there is no benefit to putting it into a traditional, no income tax to the kid anyway Quote Link to comment Share on other sites More sharing options...
MadTiger Posted February 13, 2019 Report Share Posted February 13, 2019 So unless they are old enough to have a job...no ira? Not that kind of job necessarily--ANY earned income. They help you and Mom, you pay them, and some goes into the account.That's how it's done. As long as you don't pay them more than $1,000 a month (haha!), they won't need to file a tax return. EDI: By $1,000 a month, I am getting at the $12K total that would necessitate a tax return. Quote Link to comment Share on other sites More sharing options...
MadTiger Posted February 13, 2019 Report Share Posted February 13, 2019 no ira and no roth ira unless they have EARNED INCOME i have had clients pay their kids $5000 for cutting the grass, and put it in the ira... that always seemed silly to me, because the kid still has to pay self-employment taxes on it ($700) if anyone here is gonna do that, put the money in a ROTH IRA, because there is no benefit to putting it into a traditional, no income tax to the kid anyway Even with a 0% tax liability for the regular income? Damn. Quote Link to comment Share on other sites More sharing options...
cyberbabble Posted February 13, 2019 Report Share Posted February 13, 2019 My dad opened and funded a traditional IRA for, me and I didn’t fund any of it. That was quite a while ago though, laws may have changed. He did everything by the book, so there must be or must have been a way at some point.You had a job. Some of the income from the job funded the IRA. Your father gave you a gift of money equal to the IRA deposit.If he deposited money and you didn't have enough earned income to cover the deposit then he didn't do it by the book. Quote Link to comment Share on other sites More sharing options...
milwaukee mike Posted February 13, 2019 Report Share Posted February 13, 2019 Even with a 0% tax liability for the regular income? Damn. yeah, since it's earned income it also has to be self-employment income Quote Link to comment Share on other sites More sharing options...
IAG Posted February 13, 2019 Report Share Posted February 13, 2019 You had a job. Some of the income from the job funded the IRA. Your father gave you a gift of money equal to the IRA deposit.If he deposited money and you didn't have enough earned income to cover the deposit then he didn't do it by the book.Yeah, he definitely would have done it by the book. I just know I didn’t use any of my money. I was thinking originally that I was younger, but must have been my first two years after college when I was at a job with no retirement plan....at least not one that I participated in. All I remember is that it was with Vanguard, and it didn’t make it very far after I realized I had access to the money. Bad IAG. Quote Link to comment Share on other sites More sharing options...
rdalert447 Posted February 13, 2019 Report Share Posted February 13, 2019 A 529 plan might be good for you, Houser. Don’t know how old your kids are. Quote Link to comment Share on other sites More sharing options...
MadTiger Posted February 13, 2019 Report Share Posted February 13, 2019 yeah, since it's earned income it also has to be self-employment income I see the idea you are getting at, but you worded this very incorrectly. All self-employment income is earned income, but not all earned income is self-employment income. I have been self-employed way more than employed (W-2, etc.). The first time I paid self-employment tax, I became very obsessed with the difference. Quote Link to comment Share on other sites More sharing options...
milwaukee mike Posted February 13, 2019 Report Share Posted February 13, 2019 I see the idea you are getting at, but you worded this very incorrectly. All self-employment income is earned income, but not all earned income is self-employment income. I have been self-employed way more than employed (W-2, etc.). The first time I paid self-employment tax, I became very obsessed with the difference. yes, i meant that if you are creating "phantom income" by paying your kid, in order to make an ira contribution, there is no way of paying him personally and still avoiding the self-employment tax if someone has a business, they yes they can pay him by W-2... but they are still paying both 1/2s of the social security/medicare, which is what self-employment tax is Quote Link to comment Share on other sites More sharing options...
IAG Posted February 13, 2019 Report Share Posted February 13, 2019 Mike....or Tiger...anyone really.... while you are here....need your o/t opinion....I gave a bunch of furniture to the mission several weeks ago. No way I will be able to itemize in 2019.... nor will I make enough to stress it. They physically took control of the property in January, but I arranged for the donation in 2018 and the receipt is dated December 2018 which is when I called them and gave them an inventory of what I was donating. For 2018 I will likely owe, and could possibly itemize if I could include some of these charitable things. Unfortunately most of my giving was through go fund me and other things that I can’t claim, but do you think there could be an argument made that since I called to arrange giving them the furniture in 2018 and receipt is dated 2018 that I can claim for 18? I guess if the receipt says 2018 I doubt the IRS would go further anyway. Not like the mission sends a report to IRS..... I doubt I will ever be able to itemize again, so it’s now or never. Quote Link to comment Share on other sites More sharing options...
milwaukee mike Posted February 13, 2019 Report Share Posted February 13, 2019 Mike....or Tiger...anyone really.... while you are here....need your o/t opinion....I gave a bunch of furniture to the mission several weeks ago. No way I will be able to itemize in 2019.... nor will I make enough to stress it. They physically took control of the property in January, but I arranged for the donation in 2018 and the receipt is dated December 2018 which is when I called them and gave them an inventory of what I was donating. For 2018 I will likely owe, and could possibly itemize if I could include some of these charitable things. Unfortunately most of my giving was through go fund me and other things that I can’t claim, but do you think there could be an argument made that since I called to arrange giving them the furniture in 2018 and receipt is dated 2018 that I can claim for 18? I guess if the receipt says 2018 I doubt the IRS would go further anyway. Not like the mission sends a report to IRS..... I doubt I will ever be able to itemize again, so it’s now or never. you can claim up to $5000 for non-cash stuff without an apparaisal... and since the receipt is dated 2018 that is the year you should be more comfortable claiming it in also you can give up to $75 cash without a receipt, so just in case you were giving $75/week to church or in a salvation army bucket, and don't have a receipt it's still allowable Quote Link to comment Share on other sites More sharing options...
housepicks Posted February 13, 2019 Author Report Share Posted February 13, 2019 Thinking about using Vandguard. Best etf’s and my unallocated funds are earnings 2% which is a lot better then the pennies I’m getting from Schwab. Quote Link to comment Share on other sites More sharing options...
mikeman Posted February 14, 2019 Report Share Posted February 14, 2019 Mike....or Tiger...anyone really.... while you are here....need your o/t opinion....I gave a bunch of furniture to the mission several weeks ago. No way I will be able to itemize in 2019.... nor will I make enough to stress it. They physically took control of the property in January, but I arranged for the donation in 2018 and the receipt is dated December 2018 which is when I called them and gave them an inventory of what I was donating. For 2018 I will likely owe, and could possibly itemize if I could include some of these charitable things. Unfortunately most of my giving was through go fund me and other things that I can’t claim, but do you think there could be an argument made that since I called to arrange giving them the furniture in 2018 and receipt is dated 2018 that I can claim for 18? I guess if the receipt says 2018 I doubt the IRS would go further anyway. Not like the mission sends a report to IRS..... I doubt I will ever be able to itemize again, so it’s now or never.Keep in mind you dont turn anything in when you claim charitable donations, you can do what you want and hope you dont get audited(which you wont). Not that I'm saying to lie, I would never do that. Quote Link to comment Share on other sites More sharing options...
IAG Posted February 14, 2019 Report Share Posted February 14, 2019 you can claim up to $5000 for non-cash stuff without an apparaisal... and since the receipt is dated 2018 that is the year you should be more comfortable claiming it in also you can give up to $75 cash without a receipt, so just in case you were giving $75/week to church or in a salvation army bucket, and don't have a receipt it's still allowableI gave 2-3k to Gofundme causes..the majority of my giving last year. I guess no way to count any of that. You can give unlimited cash amounts of $75 without a receipt? That’s crazy. You’re right. I was overthinking the 2018 thing. I was just lamenting how it would have been nice if I would’ve gotten around to have doing it in December, and then I looked at the receipt today and it actually was dated for December, and the wheels started turning. Thanks Mike Quote Link to comment Share on other sites More sharing options...
IAG Posted February 14, 2019 Report Share Posted February 14, 2019 Keep in mind you dont turn anything in when you claim charitable donations, you can do what you want and hope you dont get audited(which you wont). Not that I'm saying to lie, I would never do that. Lol....Well there is always the risk of getting audited when you are reporting crypto stuff. I would be more worried about that triggering an audit than charitable donations. I won’t lie about what I gave ...it’s just a question of WHEN I gave it. Technically I gave it in December. They just didn’t pick it up until January LOL. That’s my story and I’m sticking to it! May not matter. I probably won’t beat the standard deduction anyway...esp since it was raised...don’t have many deductions. I was only able to itemize in 2017 because I had to pay back all the tax credits for insurance because of unexpected BTC gains, so ended up paying over $10,000 in medical expenses. It’s possible that could happen for 2018 also but I haven’t run the numbers yet so I don’t know. Quote Link to comment Share on other sites More sharing options...
housepicks Posted February 14, 2019 Author Report Share Posted February 14, 2019 Can we move this back to where the best place to open an ira is at. I got children’s I’m trying to mold and develop over here. Quote Link to comment Share on other sites More sharing options...
IAG Posted February 14, 2019 Report Share Posted February 14, 2019 Can we move this back to where the best place to open an ira is at. I got children’s I’m trying to mold and develop over here.How old are your kids? Vanguard. Quote Link to comment Share on other sites More sharing options...
housepicks Posted February 14, 2019 Author Report Share Posted February 14, 2019 20171511 Quote Link to comment Share on other sites More sharing options...
housepicks Posted February 14, 2019 Author Report Share Posted February 14, 2019 Was considering just getting money into the account and not buying any equities until the coming recession. Quote Link to comment Share on other sites More sharing options...
IAG Posted February 14, 2019 Report Share Posted February 14, 2019 Is there a reason you want to open an IRA for them now? What does the oldest do? School or work? If work, no retirement plan? What’s the 17 year old’s plan...going directly to work? Quote Link to comment Share on other sites More sharing options...
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