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Saving for kids college .... instead of 529 you can start Roth IRA in their name


Spartan
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1 minute ago, dkchinnari said:

salary ranges untai akdha to take roth ira...so how to start roth account then

kids ki ROTH IRA accnt not for us..

go through those articles.

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But kid needs to be 11 years to start a roth for him since he can’t earn before ? Is there any rule ? I think I saw somewhere 

 

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17 minutes ago, pandemkodi said:

But kid needs to be 11 years to start a roth for him since he can’t earn before ? Is there any rule ? I think I saw somewhere

you can start from age 5, but there is list of chores which they are eligible to get paid.

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7 hours ago, Spartan said:

you can start from age 5, but there is list of chores which they are eligible to get paid.

Aa article chaduvutha first.....Thanks for posting

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9 hours ago, Spartan said:

recent ga came across article. brief overview is.

1 - for you child , start paying some salary for their chores not exceeding $2100 per annum. They can contribute all that amount to their Roth IRA and no need to worry about FICA and medicare taxes for them.

2- for kids, you can match additional amount equal to how much they earned, parent and grand parent as gift matching.  so total 6K varaku.

3- this ROTH IRA they can withdraw for their college expenses without penalty.

4- for federal FSA aids, there is workaround to withdraw that amount in 3rd and 4th year for their college.

by this u can bypass the strict rule of 529 should be used only for college expense anedi.

if they dont use it for their college, the roth ira, they can use it for anything in their life...

and you all know ROTH IRA growth beats 529 growth anytime .

Supporting links and reading.:

https://www.fool.com/investing/2020/11/14/surprise-you-can-use-a-roth-ira-to-pay-for-college/

https://www.marottaonmoney.com/do-children-need-to-file-a-tax-return-to-fund-their-roth-ira-2020/

 

@k2s @psycopk @Anta Assamey

Good idea... have to look into feasibility... :4_12_13:

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12 hours ago, Spartan said:

they

 

12 hours ago, Spartan said:

recent ga came across article. brief overview is.

1 - for you child , start paying some salary for their chores not exceeding $2100 per annum. They can contribute all that amount to their Roth IRA and no need to worry about FICA and medicare taxes for them.

2- for kids, you can match additional amount equal to how much they earned, parent and grand parent as gift matching.  so total 6K varaku.

3- this ROTH IRA they can withdraw for their college expenses without penalty.

4- for federal FSA aids, there is workaround to withdraw that amount in 3rd and 4th year for their college.

by this u can bypass the strict rule of 529 should be used only for college expense anedi.

if they dont use it for their college, the roth ira, they can use it for anything in their life...

and you all know ROTH IRA growth beats 529 growth anytime .

Supporting links and reading.:

https://www.fool.com/investing/2020/11/14/surprise-you-can-use-a-roth-ira-to-pay-for-college/

https://www.marottaonmoney.com/do-children-need-to-file-a-tax-return-to-fund-their-roth-ira-2020/

 

@k2s @psycopk @Anta Assamey

twitter space okati start chedhama ba

we can talk abt thiss 

 

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Just now, kittaya said:

 

twitter space okati start chedhama ba

we can talk abt thiss 

 

@kittaya  i need some more time to digest the info ..mainly the tax filing part..

will post thread later once i get the gist of it.

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2 minutes ago, Spartan said:

@kittaya  i need some more time to digest the info ..mainly the tax filing part..

will post thread later once i get the gist of it.

tax filing kooda matladaliii 

 

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