Pittsford, NY -- (ReleaseWire) -- 01/31/2014 -- In its role of providing valuable tools and resources to families who are saving for college, leading college savings authority Savingforcollege.com has recently announced the addition of a new calculator to its current offering of college savings and financial aid calculators. The UGMA/UTMA 529 Conversion Calculator, available for free to any Savingforcollege.com visitor, helps parents decide whether or not a conversion of assets from an existing UGMA/UTMA account to a 529 college savings plan is advantageous for federal tax purposes. The Uniform Gifts to Minors Act (UGMA) and the Uniform Transfers to Minors Act (UTMA) are types of custodial accounts that are set up by an adult on behalf of a minor. The calculator takes into account some of the more complex rules and tax consequences associated with UGMA/UTMA rollovers, including the "kiddie tax". Upon entering information relating to their UGMA/UTMA assets, calculator users will be directed to results depicting how much money each conversion scenario would make available to pay for college. The calculator also generates a comprehensive PDF report that users can elect to receive by email.
"The new calculator will be of great help to parents that have already established UGMA or UTMA accounts for their children and wonder about the possible tax benefits of moving those assets to a 529 plan," said Joe Hurley, founder of Savingforcollege.com. "But we remind them that other factors, including the child's financial aid status, can also influence that decision."
Savingforcollege.com's tools and calculators, including the UGMA/UTMA 529 Conversion Calculator, are available for licensed use on individual websites. They can be customized to match the look and feel of the designated website and to include any required disclaimers. Please contact Savingforcollege.com for more licensing information.