RichArt25 wrote:I am concerned about my parents' retirement plans and am looking for ways to help them. My father, age 50, has a traditional pension plan through his company and has worked there for 12 years. My mother, age 47, has been self-employed all her life and does not have a retirement plan established. Both plan to work for at least 15 more years. Neither has significant savings to start individual retirement plans for themselves.
I am in a very good position to help my parents set up accounts for their retirement. The primary option I am considering is to help them create ROTH IRAs for themselves and then to gift them money to place in the accounts. Based on current 2013 IRA contribution limits ($5500-$6500), the money I would give them for the IRAs in 2013 would not exceed the gift tax limit ($14000/person), so I avoid any penalties. I plan on contributing to their accounts until their retirement.
My questions are:
1) Is creating an IRA for each parent the best method to help them grow retirement funds on a relatively short timeframe? What other retirement plan options are available that I might have overlooked?
2) For IRAs, could I also contribute 2012 funds (in addition to 2013 funds) since neither they nor I have filed taxes for 2012 yet?
3) Would there be any tax or contribution conflicts/benefits with my father having a company pension plan and a separate IRA?
4) Am I overlooking any tax penalties/benefits for myself in regards to contributing to IRAs for my parents?
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