Planning finances for parents aged 60

[applesfall23]

Hi Bogleheads,

My parents (approximately age 60) are moving to the U.S. and will continue working as self-employed individuals for another 5-10 years before retiring. We handle finances jointly as a family—I am planning to manage all day-to-day expenses, including their mortgage, bills, and living costs.

We're setting up an LLC for their self-employment activities. Considering our joint financial arrangement, what should we prioritize for retirement savings and tax efficiency? Specifically:

- Would opening a Solo 401(k) or SEP IRA under the LLC be advantageous in our situation?

- Are there other retirement or tax strategies we should consider given the combined financial setup?

Thank you in advance for your insights! (Also please let me know if this question is more appropriate for personal finance instead, and I will move it). Thank you!

[stan1]

Important questions: Are they US citizens, are they planning to stay in the US or might they return?

[bombcar]

The questions above are really important, because 60-65 is when social security would kick in, if they were citizens.

https://www.whitecoatinvestor.com may have some ideas around the self-employment retirement - how you structure the business may matter (and "self-employment" may not be the best or only option). Really depends on how much they're going to make, and whether they plan on remaining afterwards.

[applesfall23]

Important questions: Are they US citizens, are they planning to stay in the US or might they return?

They aren't currently US citizens, and are coming on a green card. They are planning to stay permanently in the US.

[applesfall23]

The questions above are really important, because 60-65 is when social security would kick in, if they were citizens.

https://www.whitecoatinvestor.com may have some ideas around the self-employment retirement - how you structure the business may matter (and "self-employment" may not be the best or only option). Really depends on how much they're going to make, and whether they plan on remaining afterwards.

They are not citizens, and just moving here on a green card. I think we'll have to wait for 10 years of them filing taxes (?) for social security to kick in. They willl be making around 150-200k per year (but I want most of that to go into their savings, as I'll be handling the day to day)

[applesfall23]

https://www.whitecoatinvestor.com may have some ideas around the self-employment retirement - how you structure the business may matter (and "self-employment" may not be the best or only option). Really depends on how much they're going to make, and whether they plan on remaining afterwards.

Thanks so much for this website. It seems I have a lot of studying to do, but I found this page which seems very important for this starting their contributions this year as soon as they move here: https://www.whitecoatinvestor.com/best- ... ntractors/

[applesfall23]

On this website suggested above, I also found a section for an HSA account https://www.whitecoatinvestor.com/best- ... ntractors/ which seems important. (I have never looked into it as I have a 0 deductible PPO plan with my eployer) We will live in NJ, and the ACA marketplace healthcare plan I was thinking of for them costs around 1500$ per month, which I was planning to fund. Could/should I open an HSA account for them, and contribute money towards it to use for their monthly premiums? Note that they will be eligible for medicare (with a premium) only after 5 years of being in the US.

[bombcar]

The HSA is only available with a high deductible plan.

They have to open it when the HDCP starts.

[LadyGeek]

This thread is now in the Personal Finance (Not Investing) forum (financial planning).

(Thanks to the member who reported the post and explained what's wrong.)

[increment]

We will live in NJ, and the ACA marketplace healthcare plan I was thinking of for them costs around 1500$ per month, which I was planning to fund. Could/should I open an HSA account for them, and contribute money towards it to use for their monthly premiums?

Not sure exactly what you meant here, but an ACA marketplace insurance premium is not generally an allowed HSA expense.

[applesfall23]

We will live in NJ, and the ACA marketplace healthcare plan I was thinking of for them costs around 1500$ per month, which I was planning to fund. Could/should I open an HSA account for them, and contribute money towards it to use for their monthly premiums?

Not sure exactly what you meant here, but an ACA marketplace insurance premium is not generally an allowed HSA expense.

Thank you; I did not know that. So in that case, we will not open an HSA account for them.