I know I can contribute 12k this year to my son's 529 plan without any gift tax kicking in. My spouse can also contribute 12k for a total of 24k between the both of us.
However, we are thinking of perhaps contributing more than 24k this year- actually a total of 65K. I seem to understand that it is okay to do this if we use five year averaging (we do not plan to ever contribute any more after the 65K).
If we do this, do we need to fill out any kind of federal tax forms showing the 5 year averaging? Does anything need to be sent in to the IRS or do we just track this ourselves?
#43372 - 05/20/0809:38 AMRe: gift of more than 12k this year
[Re: marble]
Joe HurleyJoe Hurley
Registered: 01/07/00
Posts: 2075
You and your spouse each must file a gift tax form 709 by next April 15, checking the election box and attaching a short statement. You keep track of your five-year gift in case you make any other gifts to your child.
Note if you treat it as 60K from one parent, 5 year average and 5K from the other you might just preserve maximum future flexibility just in case......
