<p>We have an ugma account for my 16 year old daughter. How far back can we go to withdraw money for expenses we have incurred? She has been on a competitive gymnastics team for 7+years. It’s $400/month. Can we go back that far or just stick to more recent expenses?</p>
<p>There are a couple of issues here, and the answer to your question isn’t entirely clear as far as I can tell. The issues are whether gymnastics would be a legitimate expense to be paid from a UGMA, and how far back can it be paid.</p>
<p>UGMA funds are to be used for the benefit of the minor and are not to be used for support usually provided by the parents, such as food, clothing, school expenses, etc. The gymnastics could probably be considered above and beyond the definition of support, so in that sense it’s probably a legitimate expense that could be paid by the UGMA.</p>
<p>There’s not a lot of case law regarding retroactive withdrawals of UGMA funds, but I did find this:</p>
<p>[Pennsylvania</a> Superior Court Cases - Superior Court Case Law from PA - Pennsylvania Superior Court - unoffical reports](<a href=“http://www.romingerlegal.com/pacaselaw/superior/a35045_03.html]Pennsylvania”>http://www.romingerlegal.com/pacaselaw/superior/a35045_03.html)</p>
<p>The case implies that past expenses (8 months to 6 years prior) could not be reimbursed by the UGMA because they were not for the minor’s immediate benefit.</p>
<p>Best to talk to your tax advisor about this.</p>