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    tableclocks's Avatar
    tableclocks Posts: 383, Reputation: 2
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    #1

    Apr 22, 2015, 06:47 AM
    Gift a mutual funds to my kids
    5 older kids, all over 30, thinking of a $5,000 mutual fund for each of then now and giving it to then for Christmas, it will be in their name only, I don't see any tax troubles, I know, they will have gains or loses for the 2015 year, more likely then will save it, rather then cash where they will piss it away, do you see any thing wrong here... thanks... richard
    i would like to do it in a IRA on their behalf
    joypulv's Avatar
    joypulv Posts: 21,593, Reputation: 2941
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    #2

    Apr 22, 2015, 07:03 AM
    "in an IRA on their behalf" threw me. Not sure whether you have an IRA (and which kind) and want to gift parts of it or what.
    Read this and ask back.
    Can You Give Part of Your IRA to Your Family Tax Free?

    I personally wouldn't do this unless each of them wants this kind of tax hassle next year.
    tableclocks's Avatar
    tableclocks Posts: 383, Reputation: 2
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    #3

    Apr 22, 2015, 08:06 PM
    Why would there be a tax hassle? So they will pay on and dinidends or what ever

    Quote Originally Posted by joypulv View Post
    "in an IRA on their behalf" threw me. Not sure whether you have an IRA (and which kind) and want to gift parts of it or what.
    Read this and ask back.
    Can You Give Part of Your IRA to Your Family Tax Free?

    I personally wouldn't do this unless each of them wants this kind of tax hassle next year.
    It will be all new money, new IRA, in there name
    Just as if they were doing it themselves, only with my money
    joypulv's Avatar
    joypulv Posts: 21,593, Reputation: 2941
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    #4

    Apr 23, 2015, 03:29 AM
    OK, but each child has to have a job (and the amount can't exceed their income). A Roth IRA is better. Your financial institution will explain why.
    ebaines's Avatar
    ebaines Posts: 12,130, Reputation: 1307
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    #5

    Apr 23, 2015, 04:40 AM
    No issues gifting $5K to each. If you want to donate into their existing IRA accounts that's easy enough to do - though you'll need to know their account numbers. BTW, I did this exact same thing for my kids. There are no tax issues at all for either you or they. I agree with Joy about the Roth versus traditional IRA, though whether they may have a Roth IRA contribution depends on each of their personal financial situations.

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