Smart Tax Strategies for Growing Families

💡 UTMA accounts offer a flexible, powerful way to invest in your child's future, but families should be mindful of the "kiddie tax." This federal tax rule limits how much unearned income (like dividends and interest) a child can receive before triggering a higher tax rate. A recent article from Kiplinger breaks down ways to lower the tax burden and keep more money growing for your child.

UNest simplifies this process. We help families stay below kiddie tax thresholds through diversified investing, strategic gifting, and automated saving. Our platform is designed to maximize growth while minimizing surprises.

Most importantly, understanding the rules gives families the power to plan better. If your child's investment income stays under $2,500 (as of 2025), it's taxed at a lower rate. Anything beyond that could be taxed at the parent's higher rate. The key takeaway? Start early, contribute steadily, and be mindful of annual gains.

Pair financial knowledge with smart tools like UNest and you'll be ahead of the curve.

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