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Can I open a CollegeChoice 529 account with the money from my childs UGMA/UTMA?

April 26, 2017account child collegechoice money UGMA UTMA

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Can I open a CollegeChoice 529 account with the money from my childs UGMA/UTMA?

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CollegeChoice 529 permits a custodian for a minor under the Uniform Gifts to Minors Act or Uniform Transfers to Minors Act (UGMA/UTMA) to apply funds previously held in an UGMA/UTMA account to open an account in the Plan and to fund additional contributions to such an account, subject to the laws of the state under which the UGMA/UTMA account was established. Such a transfer of funds is generally a taxable event and you should consult with a tax advisor before transferring UGMA/UTMA assets to a 529 Plan.