Is there anyway to initially fund a 529 College Fund for my grandson with stock I already own. I have a large capital gains and prefer not to sell it.
Funding 529 College Plan with stock
Jan 14, 2007
1 Replies
NO. In fact, the 529 is not permitted to own individual stocks. You can gift the stock, and then have the child either hold it, or sell it a bit at a time, keeping in mind the Kiddy Tax now limits to $1700 the amount the favored rate the child would pay applies to. But 15% for the long term gains aren't bad, anyway. Why not just sell it, pay 15%, and open the 529? The features of the
529, allowing 5 X $12000 for a one time contribution (i.e. not just the regular $12K gift exclusion) and the tax free status of growth, make it a good deal.JOE
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