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.
- posted
17 years ago
Funding 529 College Plan with stock
Loading thread data ...
- Vote on answer
- posted
17 years ago
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