Question: Can I contribute my own stocks and bonds to the 529 account I've set up for my child?

Answer :

No. Your contributions to a 529 plan must be made in cash (e.g., checks, credit card payments), so you cannot contribute stocks, bonds, mutual funds, or any other property. If you have money tied up in such investments and would like to move the money to a 529 account for your child, you must liquidate (sell) the investments first. But before you do so, be sure to seek sound financial advice about the tax consequences and other related issues. Note: Investors should consider the investment objectives, risks, charges, and expenses associated with 529 plans before investing. More information about 529 plans is available in each issuer's official statement, which should be read carefully before investing. Also, before investing, consider whether your state offers a 529 plan that provides residents with favorable state tax benefits.