Submitted By: Aldo
Answered: November 9, 2015 11:39 am

Can I make a contribution to my granddaughter’s 529 college savings account with stock I own?

Only cash contributions (e.g., checks, credit card charges) are acceptable in 529 plans. You’ll have to sell the stock and donate the proceeds. If the stock has appreciated, you’ll owe capital gains tax on your profits; if the value has declined, you’ll be able to take a tax loss.

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Tax Glossary

Earned income

Compensation for performing personal services. You must have earned income for a deductible IRA or to claim the earned income credit.

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