John Hancock Funds - College Planning - FAQ
You can redeem assets from an UGMA/UTMA (Uniform Gift to Minors Act/Uniform Transfers to Minors Act) account, but you may be liable for income taxes on any gains upon redemption. Once the UGMA/UTMA proceeds are used to contribute to a 529 plan, the minor of the UGMA/UTMA must be named both the Account Holder and the Beneficiary of the 529 Account and cannot be changed. For more information, please consult your financial consultant.
Frequently Asked Questions About 529 Plans
Yes. An UGMA/UTMA account can be liquidated, which would be a taxable event, and the money placed into a 529 account. The custodian on an UGMA/UTMA account has the obligation to use the assets for the benefit of the child. The custodian responsibilities for those assets would still apply. See similar questions...
Many (but not all) 529 plans accept funds coming from an existing UTMA or UGMA. However, because these funds belong to the minor under a custodial arrangement, any withdrawals from the UTMA/529 account must be for the benefit of that minor only. Program rules and state laws will generally prevent you from making any beneficiary changes to the UTMA/529 account, and the minor will assume direct ownership of the account when the custodianship terminates at the age of majority. See similar questions...
NextGen College Investing Plan under Section 529
If you have established a custodial account for a child under the Uniform Gift/Transfer to Minors Act (UGMA/UTMA), you may be eligible to liquidate those assets and deposit the proceeds into a NextGen Account. Certain restrictions may apply. See the Program Description in the Enrollment Kit for more complete information. You may be able to roll over assets from another qualified tuition program or an Education IRA to a NextGen Account. See similar questions...
Frequently Asked Questions
The minor on whose behalf the account has been established is the owner of the account. However, until the minor reaches the age of account termination under applicable state laws and in accordance with the Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA), there must be a custodian listed on the account. If the minor dies prior to reaching the age of account termination, the account is included in the minor's estate. See similar questions...
SM&R College Investing Frequently Asked Questions All
Yes. However, there are tax and legal consequences that you should consider. The sale of assets in the UGMA/UTMA may be considered a taxable event. You should consult your tax/legal advisor concerning any consequences of withdrawing the funds from their existing investment. In addition, the beneficiary of the UGMA/UTMA must be the beneficiary of the 529 account and cannot be changed. The account will continue to be governed by UGMA/UTMA laws. See similar questions...
GET | Guaranteed Education Tuition
Funds invested in an UGMA or UTMA account (Uniform Gift to Minors Act/Uniform Transfer to Minors Act) belong to the minor. The custodian has a legal obligation to use the funds solely for the benefit of the minor. To maintain the proper ownership of these funds, a GET account must name the minor as both the account owner and the student beneficiary. You also will need to name a custodian or trustee to manage the account on the minor's behalf. See similar questions...
Plan FAQs - Kiplinger.com
Most 529 plans allow such a transfer, but there are a few special rules. Money you put into the kids' custodial accounts was an irrevocable gift, and moving it to a 529 account doesn't change that fact. The money can never be shifted to another beneficiary, for example, and your children will control it when they reach the age of majority, either 18 or 21, depending on state law. See similar questions...
Schwab 529 plan frequently asked questions (FAQs)
You can Open An Account online. To fund your account using the online enrollment process, you can set up an automatic investment from your bank account, or Schwab brokerage account. You can also open an account by downloading the account application. To do so, simply download the Schwab 529 application. If you need assistance completing the online enrollment form, call a Schwab 529 Specialist at 888-903-3863. See similar questions...
Schwab 529 plan frequently asked questions (FAQs)
Schwab’s 529 Plan offers 10 different investment options—each carefully built on our asset allocation models and comprised of well-known mutual funds from multiple fund families to assure diversification across stocks, industry segments and investment styles. See similar questions...
Plans Frequently Asked Questions
A Section 529 state college savings plan is a special state administered college savings program that adheres to various federal laws and the Internal Revenue Code Section 529. These plans allow investors to save money in a special account in which the earnings will grow income tax deferred and when used to pay for "qualified higher education expenses" will be federal income tax-free. See similar questions...
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