Bogleheads

[Keyser30]

My wife and I have ESA accounts set up for both of our sons (5 and almost 2). We have contributed uninterrupted since they were born. This year, due to an unforeseen bonus, we are over the income limits to contribute to the ESAs.

I read on savingforcollege that I can get around this by "gifting" the money to my kids. I want to make sure I'm doing everything above board here. How do I "gift" money to them when I've made automatic investments each month from my checking account?

Sorry for such a basic question, and thank you in advance for your help!

- Jared
_________________
"We are what we repeatedly do. Excellence, then, is not an act, but a habit." - Aristotle

[Keyser30]

Maybe this is a tougher question than I thought...can anyone help?
_________________
"We are what we repeatedly do. Excellence, then, is not an act, but a habit." - Aristotle

[rpike]

I am not sure how the IRS might question what you have done or how you could clean it up and I would not rely on some anonymous response on an Internet forum.

To have a clean paper trail for future contributions, I suggest putting the money for the ESA contribution into your child's account and then making the contribution from there.

Another Rick

[Keyser30]

Rick - thank you for the reply. I really appreciate it.

- Jared
_________________
"We are what we repeatedly do. Excellence, then, is not an act, but a habit." - Aristotle

[mikep]

I would just use a 529 if I made too much income to use an ESA.