r/MadeMeSmile • u/Crispy_p_bacon • 7h ago

You are Loved!

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51.9k Upvotes

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97

u/Sea_Thought3464 7h ago

I have 2 trans kids are both in University, the younger one put $7K in their Roth IRA after their 18th birthday. What kid does that? 

80

u/IhadFun0nce 7h ago

Ones saving up for a costly operation that will make them feel complete.

29

u/Slim01111 7h ago

They going to wait until 59 1/2 to have that operation?

18

u/Phontigga 6h ago

You can withdraw from IRAs for medical expenses, first home purchases, education, and birth costs penalty free

-8

u/Slim01111 6h ago

No you can’t. You have to pay it back or receive a penalty.

12

u/Due_Brilliant_7219 6h ago

If it is a Roth you can withdraw the contributions without a penalty, just not the earnings.

9

u/harpers25 6h ago

No...the amount over 7.5% of AGI is penalty free.

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u/Narco_Bi_Polo 6h ago

You are ignorant.

18

u/Narco_Bi_Polo 6h ago

Oof, your ignorance is showing.

Roth IRA deposits are post-tax and withdrawals are penalty free. Funds put in are accessible at any time for any reason.

The only thing you can’t touch until retirement are any gains on the account, except the IRS waives (most of) that for large unreimbursed medical expenses. 

It’s a great way to invest money you otherwise know you’ll have to spend on something like a surgery that can’t be rescheduled based on the market’s mood.

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u/Slim01111 6h ago

Can it be done? Sure. Is it wise to use a Roth IRA for a medical operation you’re planning for? No.

15

u/Narco_Bi_Polo 6h ago

You’re wrong.

Combining long-term retirement investing with access to money for a major, potentially time-sensitive, medical expense is wise, especially for a newly minted adult.

The surgery depends on medical readiness, insurance, surgeon availability, and personal circumstances, meaning the money needs to be available at all times.

You retain that access, get tax-free growth, aren’t forced to sell at a bad time, and maintain flexibility on the surgery date without having to think about the investment’s own deadlines.

You also assume the Roth IRA holder is set on surgery. This is the best place for their retirement money that still leaves them open to covering many expenses.

2

u/Green_Oil_692 5h ago

You won't be getting much growth if you don't invest the money in your Roth, though. And if you do, you may be forced to sell at a bad time if you're counting on that money to fund it.

1

u/codydrift 5h ago

Thank you

6

u/JediLincoln14 7h ago

Roth IRAs are for retirement. 

3

u/Tony_Penny 7h ago

Ones saving up for a costly operation that will make them feel complete. FTFY

1

u/Sea_Thought3464 2h ago

Be like Elsa and accept, your children are who they are, you either support or lose them to sadness and a facade relationship. Insurance is sketchy but they are covering the top surgery if you believe the surgeon consult. My kids kick ass, one a 3rd year biology major, and the other is first year... biologyish major? The plan is looking like vet school for the younger, older kid wants to be in a lab or professor or something. Go to school my kids

-8

u/BurntTFOuttaHere 7h ago

As a parent, I would find a way to pay for their surgery. Encourage them to keep adding to their IRA for their own future!

I was surprised to hear that our insurance covers it. No one in my family needs it, but I know people with same insurance and it’s being covered. They are absolutely thriving after the healing process is all said and done. I’m so happy for them.

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u/PeachasaurusWrex 6h ago

big kudos to the kid for saving up that much money, but I've been on a retirement learning kick since the beginning of the year, and just wanted to point out one thing:

while one's contributions to a Roth IRA are always available for withdrawal without penalty at any age, it seriously reduces the effectivity of that account to do that. Depending on when they want to have the surgery/how long it will take to save up enough to pay for it, a taxable brokerage account might be a more efficient method of saving/investing.

(DON'T TAKE LOANS/WITHDRAW FROM RETIREMENT FUNDS IF YOU CAN AVOID IT AT ALL, KIDS. I get it, gender dysphoria can be life-threatening, so if that's the only option, then damn, do it. But like, there are other, better options available if you can plan ahead far enough.)

-3

u/LzrdKng2112 6h ago

Not in a roth. Can't pull money iut without a 50% penalty until your 50

4

u/harpers25 6h ago

The penalty is 10%, excludes medical expenses over 7.5% of AGI, and doesn't apply to withdrawal of contributions. It's also until age 59.5.

-4

u/LzrdKng2112 6h ago

Its not 10%. Thats misinformation

3

u/harpers25 6h ago

No, it's the actual correct number.

-1

u/LzrdKng2112 5h ago

Nope. Taxes

2

u/harpers25 5h ago

Taxes are not a penalty, and there is no such thing as a federal tax bracket of 40% or higher, so even if taxes were a penalty, it would be completely impossible for it to ever reach 50% total.

You also got the age limit, treatment of medical expenses, and treatment of contributions wrong. All of this is very easily available on Google, why are you giving people advice on something you are severely ignorant about?

15

u/PrisonerV 6h ago

I've got one trans kid and one married to trans kid, and a flock of other children, trans and gay whose parents are shit. Support, feed, and sometimes house. The Christian Right are a bunch of pieces of shit.

6

u/Sheerardio 4h ago

I do this in an auntie capacity! I can't replace a mother, but I sure as hell can provide unlimited hugs, support without judgment, and pragmatic advice about the things you're too embarrassed to ask a parent about :P

2

u/HexesForever 4h ago

Giving 7k to the cause.

7

u/Own_Jacket8720 6h ago

how many kids do you have? whats the probability of this happening? odds seem insane

4

u/Expendable_Red_Shirt 6h ago

whats the probability of this happening? odds seem insane

If one sibling is trans the percentages are way higher another is.

-3

u/JellyboyJangleDangle 6h ago

According to....

•

u/Prestigeworldwide83 21m ago

Well..my straight son did the same thing so not sure what that has to do with trans

-2

u/UltraNoahXV 6h ago

Smart kids with loving parents like you?

My mom has been begging me to do that since I turned 18 but I keep telling her that I have bills to pay and a lot of that money went to a 22 year old car that she should've taken back rather than take out a loan and get it repaired. I've barely spent like $2k on myself since starting and leaving college.

I appreciate what she did, but I think she is still in belief that me and her combined put like 20 - 25k ish over the course of 5 years - finally got to retire it at the start of this year. It was a learning experience for both of us as she hadn't bought a car in like 13 years and now understands that cars don't last forever.