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    sbj98d's Avatar
    sbj98d Posts: 2, Reputation: 1
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    #1

    Aug 29, 2012, 09:23 PM
    Can I open a roth IRA if I am 62 to avoid paying tax on a money gift from my dad?
    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's Avatar
    taxesforaliens Posts: 649, Reputation: 117
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    #2

    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)
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