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Category: Tax
Satisfied Customers: 12697
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I opened a custodial savings account son when he was an

Customer Question

I opened a custodial savings account for my son when he was an infant. He is now 18, but the bank holding the account is based in Arkansas, where the age for a minor to assume an account on his own is 21. If I transfer all funds from the custodial savings account to a new savings account in his name only, will I have to report the funds as income on my federal income tax, since I technically 'withdrew' them from the custodial account?
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.



No, this is just a transfer of the principal. (a re-titling from custodial ownership to individual ownmership)


The taxes have been paid all along the way, as per the kiddie tax rules, as I'm sure you're aware. (Much, if not all, of the income being tax exempt).


Only Items of INCOME (dividends, interest) once they are IN your son's name only, will be taxed (to him) going forward.

Expert:  Lane replied 1 year ago.

Please let me know if you have any questions at all.


If this HAS helped, and you DON’T have other questions … I'd appreciate a positive rating (using the stars or faces on your screen, and then clicking “submit")

Otherwise I’m working for no crediting at all here


Thank you!


I hold a law degree, (Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986.