A Gift Tax Loophole for 529 Plans
Tax rules allow a giver to contribute up to $65,000 to an individual’s college savings account in a single year without incurring tax consequences.
Question: My spouse and I plan to establish a 529 college-savings account for our daughter and to contribute $50,000 to it this year. However, we're concerned that this high amount might be subject to the gift tax. Is there any way around this?