I'm 40 and plan to pay my 2 kids (approx $1200/year) for helping in the family business. My financial advisor suggested putting their money into a RothIRA. Advantage: RothIRA's can be used for college or saved for retirement if they don't attend college. But the salesperson thinks that's nuts, if the kids do attend college the 529s are much better. Well, I do expect they will attend college; which alternative is better?
Now, if I choose the RothIRA, I would open the accounts in their names. But 529's don't seem to work that way; parents or grandparents open 529s in their own names for the kids' benefit, right? So how does that count as paying the children (in terms of taxes)?
2006-11-30
02:29:07
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6 answers
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asked by
kickstand
1
in
United States