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I'm interpreting the previous posts to say that if the contribution is limited to one employee's child, it looks too much like income shifting.

What if the (magnanimous) employer had a company-wide benefit plan for funding 529 plans established by employees for their children, with the amount of the annual funding being a percentage of, let's say, the salary (or total compensation?) of the employee? Would that avoid classification of the annual employer contribution as wages of the employee?

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