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I was reading a page on Schwab.com regarding Significant retirement savings law changes hare coming in 2020. One item caught my attention.
“Change to 529 plans. Assets in these college-savings plans can now be used to repay up to $10,000 in student loans.”

There are no details in this article but isn’t this is a change that gets around the amount you can gift a child for tax purposes.
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There are no details in this article but isn’t this is a change that gets around the amount you can gift a child for tax purposes.

Not really, because the initial deposit to the 529 is considered to be a gift that's taxable if it exceeds the limit. Having gone through the gift tax regime once, you don't have to again at distribution.

best,
dan
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But you can always gift up to your lifetime exclusion which is what, over $11m now?
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Yeah, you just have to file the 709 return to claim the lifetime exemption. Pain in the neck for most, but no tax for anybody except Naj-level rich people ;)

d
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I wish, Dan, I wish! :)
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