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.
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
But you can always gift up to your lifetime exclusion which is what, over $11m now?
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
I wish, Dan, I wish! :)
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