I don't disagree with any of that (although it may be possible to spread the sales and keep the child in the 0% CG bracket), but wouldn't the child still end up with a couple million dollars plus Social Security at retirement?
Other than the initial tax deferral on the contribution, I don't see why I would do this. I could take the $30,000, put it into a brokerage account in my name, invest it in a total stock market index ETF, and then gift it to my grandchild when they have income with the stipulation that they use it to fund their Roth IRA. At retirement, they would then get both the balance in the Roth IRA (which they could choose to annuitize) plus Social Security. What am I missing?
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I don't disagree with any of that (although it may be possible to spread the sales and keep the child in the 0% CG bracket), but wouldn't the child still end up with a couple million dollars plus Social Security at retirement?
Post: Save for Tomorrow
Link to comment from November 9, 2021
Other than the initial tax deferral on the contribution, I don't see why I would do this. I could take the $30,000, put it into a brokerage account in my name, invest it in a total stock market index ETF, and then gift it to my grandchild when they have income with the stipulation that they use it to fund their Roth IRA. At retirement, they would then get both the balance in the Roth IRA (which they could choose to annuitize) plus Social Security. What am I missing?
Post: Save for Tomorrow
Link to comment from November 9, 2021