The Secure Act 2.0 allows employers to contribute 401(k) matches to Roth 401(k) plans. Prior to the implementation of the Secure Act, employers could match the amounts contributed to Roth 401(k) but those matching dollars had to be contributed to a traditional 401(k) plan. I do not know if an employer is allowed to stipulate that the match will only be contributed to a traditional 401(k) plan.
If the employer contribution/match is to a Roth 401(k) plan, the amount of the contribution is reported as taxable income.
No issues with waiting until December, and many would advise that approach.
My grandparents did this to my uncle - a trust for his inheritance whereas the other siblings just got the money with no strings. He resented it for sure. However, I can see their side of it too as he might have made some bad decisions, was divorced twice, etc. I remember him saying " I am 55 and they still don’t trust me."
One cannot ‘undo’ some of bad decisions from the past, nor the reasons for someone having ‘strings’ with their estate.
A friend was executor of her mother’s estate. She had a very bad brother (served prison time for murder and she knows he has committed murder on more than one occasion) that was cut out of the estate by her mom’s wishes. This brother did not have my friend’s contact information at all (out of state and her siblings were told to not give him her contact information) – well he threatened harm to a sibling/family so he ‘got to’ my friend via the contact information. She caved. Not worth getting killed over. True story!
Someone with addiction issues, bad financial choices. Yes, someone can complain about the lack of trust at a certain age, or some time removed from periods of addiction/bad choices. But those things are in some ways ‘earned’.
Another said “my mom said she doesn’t want it to be the last thing he remembers of her” - but again, someone that has been fiscally irresponsible or with other issues, it is her estate and it pains her with a struggle in this decision.
Some people have had children/adult children that they have put through drug/alcohol rehab more than once – very financially draining.
I think that it depends. There are extreme situations( a child convicted of heinous crimes, serious addiction issues, etc). In those cases, treating that child differently is warranted.
But in a situation where one child is “ responsible “ because their priorities are buying a house, or building retirement savings and another child would rather travel and enjoy some luxuries? I would not treat a child differently based on things like that.
Lifestyle choices as FallGirl mentions should not be reasons to exclude someone from inheriting or have their inheritance held in trust. However, addiction, abuse of family members, serious criminal activity - those are good reasons for handling that child’s inheritance differently in my opinion. That is what we have done.
Question for my legal savvy friends here… can a POA representative use that power to add own name to a deed? It seems conflict of interest, but quick googling shows it might be possible.
UPDATE - this blurb is more what I’d expect AI Overview You generally cannot use a Power of Attorney (POA) in New York to add your own name to the principal’s property deed unless the POA document explicitly and specifically grants you gifting or self-dealing powers. [1, 2]
The Risks of Self-Transfer
Fiduciary Duty: As an agent, you must act solely in the best interest of the principal (the property owner).
Self-Dealing Prohibition: Transferring the principal’s property to yourself looks like self-dealing.
Invalid Transfers: If your POA form lacks a specific “Major Gifts Rider” or explicit permission to gift property to yourself, the county clerk or a court may reject or void the deed transfer.
Legal Challenges: Other family members can sue you later, claiming you used undue influence to take the propert
We are starting to spend more this year and next - with home sprucing up in preparation for selling the house ‘prime time’ spring 2027, and the move out-of-state to where DD1/SIL/grandkids live. Getting the kitchen counters measured Thursday for quartz countertops (to replace the Formica which we have been fine with but the update is good for resale).
Mr. B thinks that because our house would likely be a teardown when we are gone (it will likely be torn down by a developer even now), given our ages, we really don’t need to spend on anything that would be “cosmetic” meaning if it functions and doesn’t need maintenance and doesn’t cause any problems, keep it as is. So he axed the bathroom reno plans other than replacing the jetted tub with a regular soaking one of the same size and repairing the cracked tile floors. Heated floors? If it costs more than a week in Hawaii, we must forego the heated part. That’s his words - he has his priorities.
I like his priorities. We have spent a lot on vacations, but not so much on home projects. We won’t do anything strictly for resale, but we do want to enjoy the updates we do for a little while ourselves.
Our next door neighbors built their house from scratch. When they finished, the guy turned 80. They are busy traveling now, a few years later. Mr B says they are a bad example.
As someone who has spent all day packing and moving and preparing for the popcorn removal people Tuesday, I would not do this and NOT enjoy the fruits of my labor! We have long neglected doing home upgrades. As Rafiki says …
I’m glad we did the solar and the deck rebuild when we did it. We can definitely live with that “best of Y2K” bathroom as long as I don’t have to clean the jets every time we want to use the tub (biofilm is an organism of sorts - you really don’t want to know )
I deeply regret not having the crew that did our living room/dining room ‘refresh’ – popcorn ceiling removed and ceiling and walls repainted in 2017. The lead guy was an independent - had a small pickup crew, did a lot of insurance company work and did jobs like mine in-between. The owner was a smart guy (the dash of his pickup truck was his ‘desk’) who knew how to work with his crew and manage the job; however he was a heavy smoker who had to have 7 stents at age 60; COVID did him in. His crew had done some insurance work in a prior year with our family room, and I had them smooth ceiling some other house areas. Also did our master bath. When DH and I were mid-30’s and built this home, I missed paying attention to a few things – my dad was a builder in WI and all the homes he built had smooth ceilings; but the homes DH and I had owned/3 homes in 3 southern states and more starter homes all had popcorn ceilings. A few years after we built, that is when smooth ceilings became an important home feature.
Most of our ceilings are elevated (and entry is very elevated, like 40 ft) so our home will not have all the ceilings made smooth for our home’s sale - it won’t be a cost-effective improvement for us to do.
One thing with retiring is that one can have sliding ‘deadlines’. I initially thought we would get our home ready for sale Spring 2027, but now shooting for Spring 2028. I have some travel (several group dates) and I don’t want the deadline stresses. Also having some health issues to take care of with the established medical providers in our current community. DH doesn’t want to move, so he is all in on a delay. He gets another school year with his mentoring of HS students in rocketry (along with his local adult rocketry club) - we are in a rocket community.
Will look to doing a transfer of funds from 401k into our personal stock fund, seeing how taxes will work this year. We are pre-RMD years (we both are 70 this year).
Will also talk with our FA next time we have a meeting about how much it is prudent to spend on a home in the new place. Hopefully we will see if DD1/SIL do purchase a home - but we will need to purchase where it is important for us (the right home, and probably not a ‘new build’). Their current rental home works well for their family, and it may be a determining factor on home interest rates.
That’s his words - he has his priorities.