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.

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. See similar questions...

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...

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...

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...

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...

With the passing of the tax law in August 2006, you pay no federal taxes on withdrawals used for qualified college education expenses, making a 529 an even smarter choice for savings. For more information, see Schwab Article Pension Bill Lifts 529 Cloud. See similar questions...

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...

college savings plans are set up so that the full value of the account can be used at any accredited college or university in the U.S. However, certain 529 pre-paid plans may restrict using the funds out of the state. You can use funds from The Schwab 529 Plan in any state. See similar questions...

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...

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...

A UGMA account, or in some states, a Uniform Transfer to Minors Act (UTMA) account, is a custodial account which allows parents to irrevocably give assets to a child for tax benefits and still maintain control of the assets while the child is young. The child does get full control when he or she reaches the age of majority (ages 18-21 depending on the state). It is an inexpensive and simple alternative to a trust. See similar questions...