Funding 529 College Plan with stock

Financial Planning - Financial planning in general. (Moderated) 

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Subject Author Date Funding 529 College Plan with stock malibu.ron@verizon.net 01-14-2007  Re: Funding 529 College Plan with stock joetaxpayer 01-14-2007
Posted by malibu.ron@verizon.net on January 14, 2007, 4:27 pm 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 by joetaxpayer on January 14, 2007, 5:01 pm malibu.ron@verizon.net wrote: > 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. 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 Similar Threads Posted self directed college savings plan June 24, 2008, 5:25 am Employee Stock Purchase Plan? April 8, 2008, 10:53 am Funding IRA March 28, 2007, 5:02 am Funding an LLC through the contribution of property July 11, 2007, 12:03 pm 123 College June 19, 2008, 5:12 am Is the 529 really necessary for college savings? January 15, 2007, 1:38 pm Using IRA to fund college instead of 529 April 7, 2007, 11:44 am Financial Aid for College December 26, 2007, 5:32 pm Fresh College Grad January 18, 2007, 5:03 am Just graduated from college...what do I do with this money? February 4, 2007, 6:38 am