Can I gift an IRA to a relative?

Answer by  Lisa92 (49)

You can not gift an IRA, but you can leave it to your child as a beneficiary. You should consider converting the Traditional IRA to a Roth IRA so that you can save your child from having to distribute it and pay the taxes on it. Next year starts a 3 year favorable tax treatment program for Roth conversions.

Answer by  najdorf (16)

You cannot gift your IRA to a child because an IRA is an individual retirement account. A person must have earned income to open or add to an IRA and it is your property for your lifetime or until you withdraw the funds. If you are retired you may be able to withdraw the money and gift it.

Answer by  cgroverla (516)

You can specify your child as the beneficiary of your IRA, so that your child will inherit the IRA. You cannot assign ownership of your IRA during your lifetime.

Answer by  javondasmith (42)

An Ira is a retirment fund you and your empyler pay int while you worked. The only way you can give it away is to withdraw.

Answer by  FinanceGuy (82)

Income taxes must be paid on the amount you take out to gift. Also, if you are under 59 1/2, you may have to pay a 10% IRS penalty. In addition, any amounts gifted over $13,000 in a single year to one individual reduce your lifetime gift exemption.