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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