Can I gift money to my 2 year old son and use it to fund his Roth IRA?

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Can I gift money to my 2 year old son and use it to fund his Roth IRA?

2006-12-26 04:22:13 · 2 answers · asked by williacw 1 in Business & Finance ➔ Taxes ➔ United States

2 answers

No, any IRA, Roth or regular can only be funded with earned income. A Gift is not earned income and it is in fact not even income to your son.
If you want to help him and you in the future you could start funding a 529 educational savings plan for his post secondary education.

2006-12-26 04:30:10 · answer #1 · answered by waggy_33 6 · 2⤊ 0⤋

You would not be able to do this. Your son needs some form of taxable income. You can not fund as a gift.

2006-12-26 12:25:04 · answer #2 · answered by Jason K 1 · 1⤊ 0⤋