Roth IRA Question

Is your 401k (or similar) maxed out?

[quote]sufiandy wrote:

So far I don’t see a problem with this plan.[/quote]

Other than the fact it is stupid, blatantly unethical and will likely lose in court?

Yeah, then I agree.

Jesus Christ.

[quote]countingbeans wrote:

[quote]sufiandy wrote:

So far I don’t see a problem with this plan.[/quote]

Other than the fact it is stupid, blatantly unethical and will likely lose in court?

Yeah, then I agree.

Jesus Christ. [/quote]

Lol

[quote]Testy1 wrote:
Is your 401k (or similar) maxed out?[/quote]

I don’t get the impression that he is looking for additional retirement savings vehicles. He’s just looking for tax free mid-term investments.

You could actually have your parents “gift” you $28k and get your money back faster. Even though the Roth is in your Mom’s name, once she withdrawal it into a joint count each parent can gift the $14k to you per year. They could probably gift it all to you in one year if they do not have a large estate. Your parents can deduct gifts from their estate tax exemption, i.e. they could gift $1,000,000 in a year tax free, but it would lower their estate tax exemption limit by the same amount.

While you could probably get away with this, none of this changes the fact that you are clearly proposing a loan and intend to make money off of it. All the income you receive over your total “gifts” would be taxable.

[quote]tedro wrote:

While you could probably get away with this, [/quote]

Look, here is the issues with statements like these…

The difference between a mistake and fraud is intent, oh and prison time.