Got Kids? April 15th is Deadline for Tax-Free Savings Accts Contributions

[twacowfca]

http://online.wsj.com/article/SB10001424052748704300004575095942228680772.html

 

[Rabbitisrich]

Are those accounts prone to abuse? It seems like it would be easy to stash money away and then have a relative in a low tax bracket "tutor" the kids.

[twacowfca]

Are those accounts prone to abuse? It seems like it would be easy to stash money away and then have a relative in a low tax bracket "tutor" the kids.

 

 

Maybe so, but that type of misuse might be likely to trigger an audit.  For example, taking a tax deduction for donating a car to a charity is a big red flag for an audit because people would donate a rattletrap and then take an inflated deduction for it.  Now, there must be convincing doccumentation for taking that type of deduction.

[ERICOPOLY]

It's too small to abuse.  $2,000 bucks a year max contribution per child.

 

[twacowfca]

It's too small to abuse.  $2,000 bucks a year max contribution per child.

 

 

$4,000 per child this year ( including $2,000 for the previous year ) if you set up a new Coverdale account that you can self direct before April 15, 2010.  :)

[Myth465]

Now I am slightly interested. I have a few nieces and can leave it with them or transfer it to my kids and split the difference at some point. Seems like a no brainier because I hope to help out a few kids in the family with education. What broker are you using.

[twacowfca]

Fidelity is great!  Do it now!  April 15 is almost here!

[ERICOPOLY]

My kids have their Coverdell accounts with Fairholme (opened accounts directly with them).  So Bruce Berkowitz is managing their college savings.