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I'm considering setting up a Sec. 529 plan (College Savings Plan) and according to the Plan documents I can give up to $50,000 in a single year and "average out over five years for purposes of the gift tax exclusion." If I were to do this what form(s) do I need to complete so the IRS knows that I'm using this "averaging"? Is there a publication on this?

Hopefully one of the CPAs or tax attorneys will follow this response with a more complete answer. I'm a little confused why a 529 Plan falls under Gift Tax rules. However, this TMF article ought to get you started:

You should also refer to IRS Pub 950, Introduction to Estate and Gift Tax. You can download a copy from this web site:

David Jacobs
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