Ask carrie_ can you contribute to someone else’s ira_

My finances are on track and I’m trying to help my parents get there as well. cook bacon in oven 350 I’d like to give them a gift towards their upcoming retirement. bake bacon in the oven Could I contribute directly into one of their IRAs?

How fortunate your parents are, not only that you’re on top of your own finances, but that you also want to share your good fortune with them. what temp to bake bacon in oven I often talk about one generation helping the other and usually it’s the parents helping the child.


what temperature to bake bacon in the oven It’s great to see an example of how it can work the other way as well.

Regarding contributing directly to your parents’ IRAs, some financial institutions will allow you to write a check payable to an IRA account owner or to the financial institution FBO (“for the benefit of”) the account owner. bake bacon in oven 350 However, even if you can technically do it, there’s more to think about because IRA rules and regulations are very specific.

To contribute to an IRA, an individual must have earned income equal to or greater than the contribution. bake bacon in oven parchment paper Contribution limits for 2016 and 2017 are $5,500 with a $1,000 catch-up for those age 50 or over. can i bake bacon in the oven So, theoretically, if your parents are at least 50, you could contribute up to $6,500 to each of their IRAs as long as they had earned income equal to at least that amount.

But what if one parent has enough earned income and the other doesn’t meet the guidelines? In that case, there’s the option of what’s called a spousal IRA. best way to bake bacon in the oven With a spousal IRA, a contribution can be made to the IRA account of the non-earning spouse as long as the other spouse’s earnings equal the amount of the contributions for both.

If earned income isn’t an issue and your parents’ financial institution will let you contribute directly to their IRAs, you’re almost there. how to bake bacon in oven But you should get a few more facts before deciding to write the check.

It sounds as if each of your parents already has an IRA account. how to bake bacon in the oven The next question is what type? This is important in terms of the possible tax deductibility of their contributions. bake bacon in cold oven Another question is whether or not they still contribute to an employer sponsored plan like a 401(k). temperature to bake bacon in the oven Having the answers to these questions will help you decide where to direct your contributions. bake bacon in oven recipe Here are some things to be aware of:

• Traditional tax-deductible IRA—Contributions to a traditional IRA can be fully tax-deductible. temperature to bake bacon in oven However, if someone participates in an employer sponsored retirement plan, such as a 401(k), tax deductibility is phased out at certain income levels. best way to bake bacon in oven For tax-year 2016, the levels are $61,000-$71,000 for single filers, $98,000-$118,000 for married filing jointly. bake bacon in oven temp Likewise, when married filing jointly, if your spouse participates in a retirement plan but you don’t, tax deductibility phases out between $184,000-$194,000.

• Roth IRA—There’s no upfront tax deduction for a Roth IRA. bake bacon in the oven at 350 And there’s no restriction if you participate in an employer plan. how do you bake bacon in the oven However, there are income limits that determine Roth IRA eligibility. how long to bake bacon in oven For tax year 2016, the limits are $117,000-$132,000 for single filers, $184,000-$194,000 for married filing jointly.

These income limits go up slightly for tax year 2017. how long do you bake bacon in the oven There’s also a tax on excess contributions, so you need to know what your parents may have already contributed for the tax year. how to bake bacon in the oven with parchment paper Best to discuss all this with them and find out where they’d prefer that you direct your contribution.

A direct contribution to one of your parents’ IRAs is a great idea and, in the right circumstances, could be the simplest. how do i bake bacon in the oven However, there are other ways to help them that you might also want to consider.

For instance, there’s a lot that goes into planning for retirement. how to bake bacon in an oven Have they thought about what their expenses will be in retirement? Do they have a plan for drawing income from their various resources, whether Social Security, a pension or a 401(k) or IRA? If they don’t have a financial advisor, a great gift could be a recommendation to someone you trust and picking up the tab for a retirement consultation.

You could also choose to gift them a certain amount and let them decide where best to put it. how long to bake bacon in the oven In 2017, you can give up to $14,000 to any number of individuals without incurring a gift tax. can you bake bacon in the oven And there’s no tax to the recipient.

Another option is to pay directly for medical costs. how long do you bake bacon in oven This can be a big drain for retirees. how to bake bacon strips in the oven And, again, there’s no gift tax for either giver or receiver.

However you’re able to aid your parents as they approach retirement, the fact that you want to help is perhaps the greatest gift of all. what temperature do you bake bacon in the oven But don’t make it a one-time gesture. how long do i bake bacon in the oven Let your parents know that you’re always there to discuss ideas, problems and solutions.

Be willing to listen to their advice as well. how do you bake bacon in oven Learn from their experience to make sure you have your own retirement plans in place. how to bake bacon in the oven with foil By doing so, you can enjoy all the future years together, each of you being there for the other and knowing that you’re all on the right track.

Looking for answers to your retirement questions? Check out Carrie’s new book, The Charles Schwab Guide to Finances After Fifty: Answers to Your Most Important Money Questions (Crown Business, 2014), available in bookstores nationwide.

The information provided here is for general informational purposes only and is not intended to be a substitute for specific individualized tax, legal or investment planning advice. how long bake bacon in oven Where specific advice is necessary or appropriate, consult with a qualified tax advisor, CPA, financial planner or investment manager.

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