What are the federal gift-tax consequences of contributing to CollegeAmerica?
Individuals can take advantage of the annual gift-tax exclusion by contributing up to $13,000 ($26,000 for married couples) per year per beneficiary without having to file a gift-tax return or pay gift taxes. A special rule applicable only to 529 plans allows an individual to accelerate up to five years worth of annual exclusions by contributing up to $65,000 ($130,000 for married couples) in one calendar year. While no gift taxes are payable, the donor can only take advantage of this rule by making an election on a federal gift-tax return, IRS Form 709. If you take full advantage of this special rule, additional contributions or other gifts to the same individual during that calendar year or the next four calendar years may exceed the annual gift-tax exclusion. Contributions made to a 529 plan in excess of the annual gift-tax exclusion will not cause gift taxes to be payable unless the contributions (together with all other gifts) also exceed the contributor s lifetime gift-tax exempt
Individuals can take advantage of the annual gift-tax exclusion by contributing up to $13,000 ($26,000 for married couples) per year per beneficiary without having to file a gift-tax return or pay gift taxes. A special rule applicable only to 529 plans allows an individual to accelerate up to five years worth of annual exclusions by contributing up to $65,000 ($130,000 for married couples) in one calendar year. While no gift taxes are payable, the donor can only take advantage of this rule by making an election on a federal gift-tax return, IRS Form 709. If you take full advantage of this special rule, additional contributions or other gifts to the same individual during that calendar year or the next four calendar years may exceed the annual gift-tax exclusion. Contributions made to a 529 plan in excess of the annual gift-tax exclusion will not cause gift taxes to be payable unless the contributions (together with all other gifts) that exceed the annual gift tax exclusion are greater
Individuals can take advantage of the annual gift-tax exclusion by contributing up to $13,000 ($26,000 for married couples) per year per beneficiary without having to file a gift-tax return or pay gift taxes. A special rule applicable only to 529 plans allows an individual to accelerate up to five years worth of annual exclusions by contributing up to $65,000 ($130,000 for married couples) in one calendar year. While no gift taxes are payable, the donor can only take advantage of this rule by making an election on a federal gift-tax return, IRS Form 709. If you take full advantage of this special rule, additional contributions or other gifts to the same individual during that calendar year or the next four calendar years may exceed the annual gift-tax exclusion. Contributions made to a 529 plan in excess of the annual gift-tax exclusion will not cause gift taxes to be payable unless the contributions (together with all other gifts) that exceed the annual gift tax exclusion are greater
