Are there any rules about whether a minor can contribute his own money to his UTMA account?
Our 16-yo son was interested in learning about investing last year, so my DH set him up with $1000 in an UTMA Brokerage account. DH allowed son to choose the investments for this account. He started with a few individual stocks and learned some valuable lessons about "hot stock tips" before settling on an SP500 index fund. After learning about compound interest and DCA, son now wants to add his own money to the UTMA on a monthly basis. Are there any rules against that? I couldn't find any restrictions about who could contribute to an UTMA or about contribution limits or frequency.
Separate question... We have some appreciated stock that doesn't fit with our new 3-fund strategy. It has a market value of approx. $7700 and LTCG of $1350. I would like to gift it to my son's UTMA. Could he then sell it soon afterward and reinvest the proceeds in his preferred investment? (His estimated earned income for the year is 6800, and other unearned income is 120, so I think he will avoid the Kiddie Tax.)
Everything I know about UTMAs I learned today, so please let me know if anything I said sounds a bit "off." Thanks!
Our 16-yo son was interested in learning about investing last year, so my DH set him up with $1000 in an UTMA Brokerage account. DH allowed son to choose the investments for this account. He started with a few individual stocks and learned some valuable lessons about "hot stock tips" before settling on an SP500 index fund. After learning about compound interest and DCA, son now wants to add his own money to the UTMA on a monthly basis. Are there any rules against that? I couldn't find any restrictions about who could contribute to an UTMA or about contribution limits or frequency.
Separate question... We have some appreciated stock that doesn't fit with our new 3-fund strategy. It has a market value of approx. $7700 and LTCG of $1350. I would like to gift it to my son's UTMA. Could he then sell it soon afterward and reinvest the proceeds in his preferred investment? (His estimated earned income for the year is 6800, and other unearned income is 120, so I think he will avoid the Kiddie Tax.)
Everything I know about UTMAs I learned today, so please let me know if anything I said sounds a bit "off." Thanks!
Statistics: Posted by AJ 321 — Tue Jul 16, 2024 9:19 pm — Replies 1 — Views 218