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Same here

Supplementing your kids income for them to max out 401k and Roth contributions is not illegal.

@liarloan - the money doesn’t need to come from the kids wages. It can come from parents, grandparents etc. the kid just needs to have earned income. From the fidelity link below: “Convincing a child to hand over his or her hard-earned cash to invest in a Roth IRA may be challenging but...

To many restrictions on the 529 to Roth conversion https://www.fidelity.com/learning-center/personal-finance/529-rollover-to-roth Ultimately the goal is to have the kids have 60k or so in a Roth by the time they are 18. If at 18 they have 60k in the Roth account and contribute 6k per year...

The nuance is whether the kid is earning income from a w2 job vs earning income from self employment (babysitting, dog walking, etc). For a kid with w2 income of less than $13,850 (for 2023) there is no need to file a tax return because they would no have a tax liability. The earnings record...

My plan is to have the kids max out the Roth IRA and 401ks as soon as they start working. I can always help supplement their income if needed to ensure they fund both as soon as they start working.

@momo - with the Roth IRA that $3M you calculated is completely tax free. I would start it at around 8 years old. Keep your excel file with a log of the work they have done and start funding it.

I’m curious what percentage of today’s buyers are move up buyers vs first time buyers. I don’t think there are large quantity of households that make $350k per year in OC. So it would seem that most buyers today would be people who bough a while ago and are using their equity to offset the...

The only time IHO doesn’t trash Tustin is when he swings by to pick up the $100 taped to the backboard that I leave for him :-) Once he leaves the Tustin city limits he resumes bashing Tustin :-)

I I have heard of UGA primarily because of college football - the home of Herschel Walker and Uga the bulldog. I had heard of Georgia tech because of basketball/football.

Irvine parents care about the college brand until their kids don’t get in. Then they become more practical. I’m in the accounting field and locally the top accounting school is USC. But the big four hire plenty of people from UCLA/UCI/Fullerton/UCSB. I would say you have just a good of a...

I didn’t read the story but I have a friend who is a GM of a region of a national distributor and he fought as much as he could to avoid getting electric delivery trucks. The economics made no sense but they were forced on him by corporate for ESG related reasons. Many public companies do token...

Panda probably lives around the corner from IHO :)

From fidelity: If your child is not filing a tax form that reports his or her earned income, consider maintaining a written log of their earnings in case the IRS asks questions. Unlike traditional IRAs, contributions to Roth IRAs are made with after-tax dollars. This means the account owner...

I just looked up the definition of the net investment tax on the IRS site and the gain from the sale of a home is excluded so it would not be subject to the additional 3.8% tax

I didn’t read the Forbes article :-)

Unless you are truly wealthy I would think most people would not sell their homes. Once you get over the 500k exemption you are paying upwards of 54% (44% fed + 10% CA) in taxes on the gain. The replacement home becomes to costly. If you bought a home for $1M and sold for $3M you would get...

Paging OCtoSV, Paging OCtoSV

I think the view on the full college experience and its benefits will probably change if it hasn’t already. The full college experience made sense when it was affordable. Now it is not affordable for most families. If your choices are $400k for the full college experience vs $200k by living at...

You should reach out to USCTrojanCPA to sign you up at any new developments. He provides a rebate.