That's my first impression too! However, aren't 529 Plans designed to allow for gifts from a whole host of donors? Could the employer make a "gift" to the employee's child? As you imply by the use of the quotation marks, the idea of a gift from an employer to an employee's child is farfetched. Now if we're talking about a truly magnanimous employer who makes nondeductible contributions to employees' childrens' college accounts, you might be able to make a case. But I didn't get the impression that was what we were talking about.Phil Marti
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