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What I mean is that custodian accounts (UTMA's and UGMA's) are owned by the child, and taxed at his or her tax rate, not yours.

But Hillmp still has to come up with the tax monies on the accounts. Only the first $700 of earnings would be tax free, and earnings >$1400 would be subject to the kiddie tax at Hillmp's marginal rate, given the age of his children (<14).

Some growth funds can produce capital gains just as plentiful as aggressive growth funds.

Hillmp asked about growth stocks, not growth stock funds. Individual growth stocks would indeed reduce the distributions compared to mutual funds.

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