Son -21 inherited ira
I haven’t told my son yet he has an inherited IRA from his dad, my ex husband.
He has three more years to zero out the account and reinvest.
Is Roth IRA the way to go? Any other suggestions? I am a little nervous because he still doesn’t know how to appreciate the dollar. And I have a lot to do with that
Thx in advance for your help!!
Terry Says
Whew, it’s time to start his financial education. Could I suggest a copy of The Savage Truth on Money. It’s available on Amazon. He doesn’t have to read the whole thing — but the first third of the book is written with him in mind.
I’m glad you know he has 10 years to withdraw the money — and pay taxes on it (at his low rate). Should the money be used for college or grad school? Is that what his father would have wanted? Has he graduated — and if so, should the money be used to pay down student loans?
He can’t open a Roth IRA unless he has earned income from work. Is he working now, and is he participating in a 40l(k) plan at work?
It’s hard to give advice on what should be done with the money. Technically, since he is over 21, the money is his — and I’m betting he will buy a car! So, yes, you need to consider the alternatives and help him jump-start his savings. But I can’t make more specific recommendations without knowing his situation.
