Quote:
Originally Posted by naneiben
This is an interesting idea.....
Wow, this gets complicated. You can see I have more questions than answers. I love the idea of the dollar a day savings plan.
|
It does get complicated. But my situation is simple. I'm not contributing anything. I don't have earned income so I can't contribute to a Roth. But I do annual Roth Conversions every year, at least until I take SocSec at 70. I opened new accounts for the kids and fund them at that time. Later I'll just do annual transfers.
I figure the Roth funds are all theirs in the long run anyway and this is a way get them started. Actually, it's kind of silly to go through all this effort. But I just want the opportunity to honestly say I've been contributing $1/day and suggest they continue.
I actually have their parents as the secondary beneficiaries (after spouse). They understand the plan and will carry it out if we're not here.
I also do the 529 for education. But I'm less confident in that after Obama proposed taxing it. It went nowhere, but the fact that it was even suggested is enough for second thoughts on contributing too much.