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Superfunding a 529 Plan That means you can contribute up to $85,000 to a 529 plan ($170,000 if married giving jointly) in a single year and not owe any gift taxes.

How to contribute to your 529 account A one-time electronic funds transfer. Recurring contributions from a checking or savings account. Automatic payroll deduction. Rollover from another state's 529 plan* Proceeds from a Coverdell Education Savings Account* Personal check, bank draft, cashier or teller's check mailed to:

Gifting can help with estate planning Gifters can contribute up to $16,000 in 2022, and up to $17,000 in 2023, to a 529 account per person, per year with no gift tax ramifications.

529 contributions are tax deductible on the state level in some states. They are not tax deductible on the federal level.

529 plan contributions are considered to be completed gifts to the beneficiary, and may be subject to federal gift tax. The first $17,000 of gifts to each beneficiary during 2023 (or $34,000 for a married couple filing jointly) is excluded from gift taxation.

A 529 plan does not set a limit on how much any one person can contribute to the plan in a given year. However, money that a grandparent contributes is considered a gift, meaning gift taxes can apply.

You may be subject to gift taxes when you make large contributions to a 529 plan. But thanks to the IRS annual and lifetime exemptions, most people will never actually have to pay the gift tax.

A gift giver can open a new 529 plan account in a child's name or contribute to an existing account. Contributions to a custodial 529 plan account or to a parent-owned 529 plan will minimize the impact on eligibility for need-based financial aid. Gift contributions can be sent by check to almost any 529 plan.

529 gift tax contribution limits In 2023, you can gift up to $17,000 (or if you're married and file taxes jointly, up to $34,000) per recipient without those contributions counting toward your lifetime gift tax exemption.