The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: 529 Plans and Gift Taxes||Date: 9/20/2013 2:15 PM|
|Author: finfusion||Number: 119175 of 124795|
The "owner" has no beneficial interest.
I thought I recalled that the owner could withdraw the original contributions (not the earnings) tax free, but I haven't looked that up. Can anyone comment?
If so, control of the original contributions (where that money could revert to the owner), seems like a beneficial interest. And transferring that ability to withdraw the original contributions to the parent (from the grandparent) would be a gift. (In which case, is the transfer of ownership as a gift only valued at the original contributions?)
I may be all wet on all aspects of this, but I've thought about this on my own before and assumed that's what drove the gift aspect of any such transfer.
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