Nov 13, 2019
12:33:01pm
12:33:01pm
A UTMA is taxed with the exception of $1,050
that is tax free and then an addition $1,050 taxed at the children's rate. everything after that is stepped up to the parents rate.
I agree to a with RdF to a certain extent. 529 is for educational purposes only. If you want any sort of control over the money for a mission or other things stay away from 529. If you plan on using it for college then its a great asset. Tax free growth when used for qualified expenses.
The draw down for a UTMA is that you lose control over the assets once your kid reaches the age of majority. Also counts as assets for the child which affect their ability to receive government funding FAFSA for school.
I agree to a with RdF to a certain extent. 529 is for educational purposes only. If you want any sort of control over the money for a mission or other things stay away from 529. If you plan on using it for college then its a great asset. Tax free growth when used for qualified expenses.
The draw down for a UTMA is that you lose control over the assets once your kid reaches the age of majority. Also counts as assets for the child which affect their ability to receive government funding FAFSA for school.
Originally posted on Nov 13, 2019 at 12:33:01pm
Message modified by TPcoug on Nov 13, 2019 at 12:35:52pm
Message modified by TPcoug on Nov 13, 2019 at 12:38:37pm
Message modified by TPcoug on Nov 13, 2019 at 12:41:22pm
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