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View Full Version : Can I open a roth IRA if I am 62 to avoid paying tax on a money gift from my dad?


sbj98d
Aug 29, 2012, 09:23 PM
My dads' annuity has come to term. If he takes out a lump sum and gives me the money and it exceeds $13,000 can I open a Roth IRA to avoid paying taxes on this money?

taxesforaliens
Aug 29, 2012, 09:27 PM
If he is giving you a gift, that money is not taxable to you.
However, your father can not avoid paying income taxes by giving the money to you as a gift.
Also, if it's more than $13,000, he will have to file a gift tax return, but won't need to pay gift taxes if he does not reach the life time gift limit (it's 5 million I believe)