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Can a UGMA/UTMA account be transferred into a 529 account?

April 26, 2017account transferred UGMA UTMA

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Can a UGMA/UTMA account be transferred into a 529 account?

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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.