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Can I transfer $3,000 from my IRA to my girlfriend's IRA?

cunoodle2 181 178 March 12, 2016 at 07:02 AM
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Title says it all. It is possible to transfer some money (hopefully tax free) from my IRA to her IRA? Any advice would be greatly appreciated :-).

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#2
No you cannot and even if you could, I would advise not to do so.
There is a reason it is called individual retirement account (IRA).

I am not sure what your motive is for the transfer, but there is a way where one person can grant authority/permission to other person to make/monitor changes in there IRA. Maybe it might help in your case.
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#3
If you have a Roth IRA and have 3000 dollars of contributions you could just make a withdrawal and then place the money into her account. Otherwise you would have to go to the company who has maintains your IRA and ask.

What are you trying to use this particular strategy?
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#4
Not a particularly wise idea. Use cash and don't pull it out of yours.
Also there is a psychological component to retirement, if you are funding it for her she may not have the buy-in to participate.

Can't say I understand this transaction at all for a lot more reasons than I'm willing to debate in this thread.
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#5
Thanks for everyone's input. Here in my reasoning...

Years ago she moved across state lines to follow me on a new job. She was stranded in a hotel with no money. On her own free will she withdrew $3,000 from her own 401k in order to pay for basic living expenses. This was such an amazing and sweet thing to do. I want to return it back to her. I have quite a bit in my IRA and also have a work 401k. I could take it out and pay the tax penalties I guess but I was trying to avoid that. I'm a lucky guy and want to give her a sense of security.
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#6
Quote from cunoodle2 View Post :
Thanks for everyone's input. Here in my reasoning...

Years ago she moved across state lines to follow me on a new job. She was stranded in a hotel with no money. On her own free will she withdrew $3,000 from her own 401k in order to pay for basic living expenses. This was such an amazing and sweet thing to do. I want to return it back to her. I have quite a bit in my IRA and also have a work 401k. I could take it out and pay the tax penalties I guess but I was trying to avoid that. I'm a lucky guy and want to give her a sense of security.
she had penalties? Nice girl, I would have dumped you Smilie j/k
as rob said, you can do it with a Roth out of your own contributions since that part wasn't pre-tax
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#7
Quote from cunoodle2 View Post :
Thanks for everyone's input. Here in my reasoning...

Years ago she moved across state lines to follow me on a new job. She was stranded in a hotel with no money. On her own free will she withdrew $3,000 from her own 401k in order to pay for basic living expenses. This was such an amazing and sweet thing to do. I want to return it back to her. I have quite a bit in my IRA and also have a work 401k. I could take it out and pay the tax penalties I guess but I was trying to avoid that. I'm a lucky guy and want to give her a sense of security.
The best thing you could do is not touch your IRA and make contributions into hers on an ongoing basis until you hit 3k. This keeps you from devaluing your IRA of which you cannot recommit the 3k, and it gives you what you desire. There are other reasons why this might be good. But if you don't have 3k cash to give to her then taking out of your IRA would seem like a poor choice. "Giving her a sense of security" should not be a short-cut to actually providing a sense of security -- because let's face it, taking 3k from a properly established Roth IRA in one name and moving it into someone else's name at a likely higher cost basis is not secure nor would it provide a sense of security. Adding in ADDITION to your existing IRA situation by boosting her retirement back up would provide this "sense". Money and emotions work very poorly together. I'm all for helping your girlfriend, but I can't support the poor shift in funds for an emotional "nothing" as it actually is. Stick money in each month and watch it grow.

FYI, $3k would be approximately $75/week until the end of the year.
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#8
Quote from eekthecat View Post :
The best thing you could do is not touch your IRA and make contributions into hers on an ongoing basis until you hit 3k. This keeps you from devaluing your IRA of which you cannot recommit the 3k, and it gives you what you desire. There are other reasons why this might be good. But if you don't have 3k cash to give to her then taking out of your IRA would seem like a poor choice. "Giving her a sense of security" should not be a short-cut to actually providing a sense of security -- because let's face it, taking 3k from a properly established Roth IRA in one name and moving it into someone else's name at a likely higher cost basis is not secure nor would it provide a sense of security. Adding in ADDITION to your existing IRA situation by boosting her retirement back up would provide this "sense". Money and emotions work very poorly together. I'm all for helping your girlfriend, but I can't support the poor shift in funds for an emotional "nothing" as it actually is. Stick money in each month and watch it grow.

FYI, $3k would be approximately $75/week until the end of the year.
This makes the most sense, even if it's just all at once at the end of the year with a check. No reason to pay a penalty.
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#9
Much easier to just give her money she can contribute to her own retirement account. If you don't have type of disposable income, just do it in installments.
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