I have opened up 3 new 529 accounts for newly acquired grandchildren. I want to front load the accounts. I understand I can front load up to 5 years without gift tax consequences which means I can fund up to $90,000 this year. This is more than I intend to fund each account in total (they have 3 other grandparents as well) and I don't have this kind of money right now. But I would like to front load more than $18K this year, say $36K, which would be a 2 year front load. My question is, if I do this can I front load any additional contributions next year? Next year the gift tax limit will be $19K. Can I contribute say, $35K? I called my 529 custodian (my529 Utah plan) and the woman I spoke to said she didn't know and I had to speak to my tax advisor. Well, I don't have a tax advisor. I am a Boglehead who has a simple financial life and do my own taxes with the help of TurboTax. The woman did say if I only contributed $18K this year that I could front load 5 years' worth of contributions next year. This would just put me in the same situation, only a year down the road.
I am certain others have faced the same situation. What is your understanding? Thanks for your help!
I am certain others have faced the same situation. What is your understanding? Thanks for your help!
Statistics: Posted by Carolina Shagger — Wed Dec 18, 2024 10:04 am — Replies 2 — Views 111