Can assets from an UGMA/UTMA account be transferred into an account?
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. The beneficiary, upon reaching the age of majority in his/her state of residence, will become the account owner. The beneficiary and/or account owner should notify SM&R when this occurs so that the account can be registered in his/her name. Any additional contributions to this account will be treated as UGMA assets. If you do not want new contributions treated as UGMA assets, you should open a seperate account for new/subsequent contributions.
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. The beneficiary, upon reaching the age of majority in his/her state of residence, will become the account owner. The beneficiary and/or account owner should notify SM&R when this occurs so that the account can be registered in his/her name. Any additional contributions to this account will be treated as UGMA assets. if you do not want new contributions treated as UGMA assets, you should open a separate account for new/subsequent contributions.
