Gift contribution to 529 limits and transfers
Is this allowed?
The maximum gift contribution in 2024 is $18k per person. Lets say you have 2 kids and you want to contribute 2x that amount. For sake of simplicity, say there is just one parent. You contribute $18k to one kids 529 and another $18k to the other. Then transfer $18k from one of the kids accounts to the other. This way you are allowed to contribute 2x the amount to one kid’s 529 in one year. Seems like it is allowed. Thanks
Permalink Submitted by Alan - IRA critic on Mon, 2024-04-08 15:53
Apparently, this is allowed without gift tax implications. However, the IRS has not yet clarified how this might affect rolling 529 balances into the beneficiary’s Roth IRA.