RE: IRAs for kids.

From: jgoodbu@dynamic.ca
Subject: RE: IRAs for kids.
Date: Thu, 04 Jun 1998 14:20:00 -0500

Previous Article (by Author): Tax on IRA Withdrawals "Richard A. Bauer"
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>>    My understanding is that, since you can gift $10k to any one person
>>each year, there is no reason that you can not gift your kids $2000 to
>>open their IRA's.<...>

>
>IRAs must be funded with *earned* income.  Gifts aren't earned.

Just swap the gift for your earnings . . . I'd use the gift as spending money,
and put an equal amount of my earnings in the IRA, up to your annual eligible
amount.  I know it sounds too simple to work, so speak to your accountant.  I
live in Canada, and our RSP laws are similar, but not identical. Here, 18% of
your earned income is eligible.





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