Gift Earnings Equal to Child’s Earned Income

Home Fairmark Forum Retirement Savings and Benefits Gift Earnings Equal to Child’s Earned Income

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  • #14378
    Tom Stewart
    Participant

    My 22-year-old daughter is in her last year of college and earned approximately $2,400 last summer (2020). Can I gift $2,400 to a Roth IRA she sets up? If so, any tax issues or drawbacks that I’ve missed?

    Thanks,
    Tom

    #14379
    Kaye Thomas
    Moderator

    No problem, she can fund her IRA with money received as a gift, up to the amount of her earned income.

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