Want to give a gift that makes the recipient happy now and really happy and grateful in the future?
Consider gifting towards a 529 college savings plan. My children were fortunate to have generous grandparents who gave them many gifts throughout the years. And the gifts that made both my kids and us parents the happiest were contributions to their 529 accounts! You can open up a 529 account where you are the owner and the child is the recipient, and you may be able to save money on your state taxes by deducting some of your contribution. Or you can give cash to the 529 account owner to deposit in the account.
For older kids and young adults who are starting to earn money of their own, you can match part of their earnings as a Roth contribution. This account is opened in their own name if they are 18 or older, or it can be a custodial account if the child is under 18. Money that is in a Roth IRA is never taxed again, and is the absolute best savings vehicle for young folks.
Please reach out to the Verisail team if you need help or have any questions.