That's not a sound strategy, since you will accumulate gains larger than the annual kiddie tax exemption. It generally makes sense to realize gains annually so that no taxes are ever paid.riptide wrote:I would just let the investment sit alone and compound/re-invest through the years.
acejacksingh wrote:"Voluntarily throwing away $6000?"
Roth means volunteering to pay avoidable taxes.acejacksingh wrote:Why so much Roth?
This isn't true. The OP is suggesting a sound strategy for avoiding paying tax.LongerPrimer wrote:The quicker the UGMA gets to a tax paying position, the better off your pocket will be.
No, it's not. Paying no taxes on a successful UGMA is the desired goal. The munificent 0% rate on LTCG for most Americans makes this possible.LongerPrimer wrote:Paying taxes on a successful UGMA is the desired goal.
$50,000aw82 wrote:30 years of contribution: $150,000
Taxes paid on contributions: $37,500 (assume 25% marginal over the course of career)
I don't know what a Roth conversion pipeline is.ShimmyShuffle wrote:I'm going to need to read up on the pro rata rule and back door Roth, but would this also cause complications for a Roth conversion pipeline? Are the back door and the pipeline the same thing, similar or completely different?