Menu

Updated

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.

 

 

 

 

Screen_Shot_2017-10-09_at_12.00.06_PM.png

Nothing in this blog should be construed as tax advice, a solicitation or offer, or recommendation, to buy or sell any security. Financial advisory services are only provided to investors who become Wealthfront Inc. clients pursuant to a written agreement, which investors are urged to read carefully, that is available at www.wealthfront.com. All securities involve risk and may result in some loss. For more information please visit www.wealthfront.com or see our Full Disclosure. While the data Wealthfront uses from third parties is believed to be reliable, Wealthfront does not guarantee the accuracy of the information.

Was this article helpful?