Page 11 - Hobe Sound Reflections - October '23

Hobe Sound, Page 11

iN your CoMMuNity Financial Focus from page 10
®
You have various options. For one thing, if your children
have earned income, they can contribute to an IRA to help
fund their retirement – and while you can’t put funds directly
into their IRAs, you can give them money for that purpose, up
to the annual contribution limit, which, in 2023, is $6,500, or
$7,500 for those 50 or older. Also, if you have grandchildren,
you could contribute to a 529 education savings plan for them.
A 529 plan can provide tax-free earnings and withdrawals for
qualified higher education expenses.
However, even if you don’t think you can afford to make
cash gifts, you might be able to provide some financial benefits
in other ways. For example, you could give your children
shares of stock you’ve owned for several years. If these shares
had appreciated in value, and you were to sell them yourself,
and then give the money to your children, you’d have to pay
the capital gains taxes. By gifting the shares directly to your
children, you’d avoid these taxes, and while your children
would have to pay the taxes when they sold the shares, they
might be in a lower tax bracket than you. And if they didn’t
need the money right away, they could hold the shares and
hope that they appreciate further. (Keep in mind that you can
make financial gifts, including the value of stocks, of up to
$17,000 per person, per year, to as many people as you want
without incurring gift taxes.)
Being cautious about providing financial support to
your grown children and other family members – and
being purposeful when you do provide it – isn’t selfish.
It’s a thoughtful way to protect your own financial
security and avoid burdening your family – while still
helping them out when you can.
This article was written by Edward Jones for use by
your local Edward Jones Financial Advisor, Edward
Jones, Member SIPC.
Edward Jones is a licensed insurance producer in all states
and Washington, D.C., through Edward D. Jones & Co., L.P.,
and in California, New Mexico and Massachusetts through
Edward Jones Insurance Agency of California, L.L.C.; Edward
Jones Insurance Agency of New Mexico, L.L.C.; and Edward
Jones Insurance Agency of Massachusetts, L.L.C.
Edward Jones, its employees and financial advisors cannot
provide tax advice. You should consult your qualified tax
advisor regarding your situation.
Contact us at (561) 748-7600, Sally Sima Stahl, AAMS,
1851 W. Indiantown Road, Ste. 106, Jupiter, FL 33458.