We started with a fifty buck monthly contribution to UTMA for our kids back in the ‘90s. For their educational expenses (tuition, books, etc.).Eighteen years. Then it had to be an UGMA.
Clinton’s Congress changed the rules and it all became taxable at capital gains rates of 20% when you pull it out.
That’s what happens when Congress changes the laws on educational investment accounts.
If they can do that on a whim, there is no stopping them from confiscating our investment accounts. For the good of the people.
Good for you for doing $50/month investing for your kids in the 1990’s when $50 was real money. And if the long-term capital gains tax is 20%, that means your kids were in a really high capital gains tax bracket. Good job! (even if the Dims taxed it more than they originally said)