I was wondering if they had all of their funds in a tax deferred accounts or not.I think it’s probably pretty low if none at all since parents can gift a child $38,000 this year without worry about taxes. Selling investments with a capital gain to do so is another story, though, if they’re over $94,000 in realized gains."We were pleased to be able to provide a large block of cash toward that purchase"Saving before and in retirement can pay off in many ways. "Too much?" I dunno, as long as you are able to maintain your desired style of living, as well as insure against unknown risks or events -- health, accidents, children's needs, and so forth. I've been retired for more than 10 years. Recently my daughter needed cash to make a downpayment on a house. We were pleased to be able to provide a large block of cash toward that purchase. We hadn't saved "too much." We had a contingency reserve. This wasn't simply money sitting in the bank. It had been invested in the stock market.
Very nice that you could do this.
What were the tax implications of providing a large block of funds in one year?
Regardless, $38,000 is a large block of cash for sure.
FWIW - $38K does not go too far in places we have lived to "provide a large block of cash toward that purchase".
Statistics: Posted by smitcat — Thu Jul 25, 2024 1:44 pm — Replies 107 — Views 11479