Are my 529 plan contributions subject to federal gift tax?


529 plan contributions are considered to be completed gifts to the beneficiary, and may be subject to federal gift tax. The first $14,000 of gifts to each beneficiary during 2017 (or $28,000 for a married couple) is excluded from gift taxation. Under a special rule for 529 plans, you can elect to treat a contribution up to $70,000 (or $140,000 for a married couple) as if you had applied it over a 5-year period. This is sometimes referred to as “superfunding.” You can apply any gifts above $70,000 (or $140,000 for a married couple) against your lifetime gift tax exclusion. Wealthfront does not provide tax advice. You should consult your personal tax advisor for more information.






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