I had an idea on a way for me to have more space in Roth and wanted to see if anyone has a reason it wouldn't work.
My dad is still working at age 70, but only contributes to his 403b. He has a traditional IRA for him and my mom, but no Roth. Their modified agi is less than the Roth limit. My thought is to gift $6500 to my mom and $6500 to my dad and have them each start a Roth with me as the beneficiary. I'd also have them waive the spousal transfer in the case of either of their deaths. Also considering the same thing with my in laws as my mother in law still works at 65. All in, that could be $37k (13+13+11) in Roth if I backdoor for my wife and I, as well as contribute for both of my parents and my wife's parents.
RMD wouldn't be an issue, gift laws are being followed. Roth conversions by my dad could be done into a different Roth account which could be started if desired. Trust is not a concern. Am I missing anything????
My dad is still working at age 70, but only contributes to his 403b. He has a traditional IRA for him and my mom, but no Roth. Their modified agi is less than the Roth limit. My thought is to gift $6500 to my mom and $6500 to my dad and have them each start a Roth with me as the beneficiary. I'd also have them waive the spousal transfer in the case of either of their deaths. Also considering the same thing with my in laws as my mother in law still works at 65. All in, that could be $37k (13+13+11) in Roth if I backdoor for my wife and I, as well as contribute for both of my parents and my wife's parents.
RMD wouldn't be an issue, gift laws are being followed. Roth conversions by my dad could be done into a different Roth account which could be started if desired. Trust is not a concern. Am I missing anything????
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