Should I fund my wife's Roth IRA account with withdrawals from my Roth IRA?
I am 62 years old, my wife is 51, and our son is 19. My wife and I both have Roth IRAs, each valued over $100,000. I am retired and my wife still works. I am thinking of funding her IRA by withdrawing from mine. Is this a good idea?
I'm missing how this is a good idea, or what you are trying to accomplish.
So no I don't think this is a good idea.
There are no required minimum distributions required on a ROTH IRA- so you aren't pushing those back.
If you are looking to fund her ROTH IRA you should do it from other savings or current income.
Best of luck.
This transfer of funds seems like it would fit the commonly used phrase of "robbing Peter to pay Paul". There would really be no advantage in this strategy since there is no net gain in funding. I would recommend your wife funds her Roth with earnings from employment. In addition, if your wife earns enough and you have the excess funds you can even continue funding your Roth! It is great that you have each saved diligently into tax-free savings. Now, rather than attempting to play a shell game with the funds, be sure to follow an investment strategy that will provide the funds with a chance for continued growth while meeting your spending needs. Goodluck, I hope this helps!
No, as it is displacement of funds. I would use other assets such as savings or your checking account to fund the Roth IRA. You may also be eligible for a Spousal IRA for tax deductions...something to look into.
Great question, I hope this helps.
If I assume that you and your wife are working toward the same goals, I find it difficult to understand how the transfer of funds from one part of your combined investments to another will provide you with any advantage. I have to believe that these accounts form a common pool that is intended to provide you with financial wherewithal for the future. If you and your wife have access to both of these Roth IRAs, the bigger concern is how the funds are invested so that they can continue to grow for your needs in the years ahead. No, the transfer you are considering is not a good idea.
I don't see benefit in withdrawing from a Roth IRA to fund another. The net result is the same amount of funds in Roth IRAs, and you may incur trading fees if you have to buy/sell securities to complete the transfer. There doesn't seem to be a benefit in the strategy other than transferring funds from your name to your wife's.