My youngest child, FBO on a 25+ year old E-IRA/Coverdale IRA, will turn 30 soon and will not have any education expenses. The only under-30 family member is a grandchild, niece to the FBO child. Is there a way to transfer those funds to that grandchild without the 10% penalty and ordinary income tax hit?
Is there anyway whatsoever to avoid the penalty and tax?
If not, is there a way to make the tax hit payable on my son’s tax bill (lower tax bracket)?
