Financial Products

Financial Products

Questions about financial product options? Find discussions around a wide variety of financial service products here. Looking for your first debit card or a seasoned saver looking for tips to build your bank account, this is a great place to share and learn.

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Pioneer
Posts: 1
Registered: ‎03-27-2017

transfer funds from UTMA to 529... are taxes owed?

Grandmother managed a UTMA account in Utah for my oldest son.  In 2015 she transferred the funds to an Idaho 529 account I have open for my son.  We received a letter from the IRS this week that my son must pay capital gains tax from the liquidation of the UTMA account.  My son never received the money directly and is attended college full time.   Would this be considered a gift and since it was moved into the 529... should he be paying taxes on the liquidation of the UTMA?