Menu

UTMA vrs. Taxable accounts for children

Home General Investing UTMA vrs. Taxable accounts for children

  • Avatar jz 
    Participant
    Status: Physician
    Posts: 648
    Joined: 01/09/2016

    For children, UTMA accounts and taxable accounts now indistinguishable.  This resulting from TCJA.   Both are custodial until age of majority.  Both can be used for any purpose. Both require annual taxation of  interest, divs, and cap gains. Unearned income in both are subject to trust rates.

    Are there any functional differences that I’m missing?  Both are inferior to 529s for post high school training.

    #171850 Reply
    Avatar jz 
    Participant
    Status: Physician
    Posts: 648
    Joined: 01/09/2016

    Existing UTMAs can be rolled into 529s, so advantage there.  This feature might be state specific.

    #171851 Reply
    Avatar spiritrider 
    Participant
    Status: Small Business Owner
    Posts: 1710
    Joined: 02/01/2016
    For children, UTMA accounts and taxable accounts now indistinguishable.

    Click to expand…

    Huh? UTMAs are minor’s taxable accounts before and after the TCJA.

    #171881 Reply

Reply To: UTMA vrs. Taxable accounts for children

In case of a glitch or error, please save your text elsewhere, clear browser cache, close browser, open browser and refresh the page.

Notifications Mark all as read  |  Clear