Message Font: Serif | Sans-Serif
No. of Recommendations: 0
rhill0123 writes (in part):

This is interesting -- it means that anyone over the AGI limit can still contribute to an ESA via gifting the money. Other items go on to suggest that contributions to an ESA *is* essentially gifting the money. So why is their an AGI limit in the first place?

I reply:

That is essentially correct, as long as the recipient of the gift does not also have too much income, the donor has not already reached the gift tax limit with the intended recipient, and the recipient is willing to cooperate with the donor's wishes. Given this workaround, why is there an AGI limit in the first place? Because Congress can be very, very strange. --Bob
Print the post  


Paying For School Guide
Trying to Tackle Tuition? The Motley Fool's Guide to Paying for School will help you fight those rising education costs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.