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FOR PROFESSIONALS
Gift tax center
Example
Example where couple may be better off not consenting to split gifts because five-year spreading election becomes unavailable if gifts were split.
Assume the same facts as Example 1, except that Mary Smith has made a $12,000 gift of stock to each of their two children. If she consents to split gifts with John, then each is considered to have made $16,000 in gifts to Stephen ($10,000 in 529 contributions and $6,000 in stock gifts) and $10,000 in gifts to Susan ($5,000 in 529 contributions and $6,000 in stock gifts). Since the $16,000 in gifts to Stephen exceeds the $15,000 annual exclusion, John and May will each be required to report a $1,000 taxable gift.
Unfortunately, it appears that five-year averaging cannot be elected, since the 529 contribution (after gift-splitting) does not exceed the annual exclusion amount of $15,000, as required under the tax law.
In order to avoid reporting any taxable gifts, Mary and John may decide against gift-splitting. Mary is not required to file Form 709 since her gifts to each child are below the annual exclusion amount. John would file Form 709 as shown in Example 2, making the five-year election to stay below the annual exclusion amount.
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Ameriprise Financial instructions
Consult with your office/branch manager for instructions.
Commonwealth Financial instructions
Commonwealth Financial Advisors, you will find your Savingsforcollege.com portal on CommunityLink in the Financial Planning Playbook under Education Planning Tools.
LPL Financial instructions
Visit the Education Planning page in the LPL BranchNet Resource Center to access your Savingforcollege.com portal.
Morgan Stanley instructions
Visit Tools and Forms in the Education Savings Products page in 3DResources to access your Savingforcollege.com portal.
Raymond James instructions
Visit the 529 Plan Resource Center on RJ Net to access your Savingforcollege.com portal.
RW Baird instructions
Visit the 529 Department page on BairdWeb to access your Savingforcollege.com portal.
Financial Professionals
Top 529 College Savings Plans
One-year rankings are based on a plan's average investment returns over the last 12 months.
State | Plan Name | |
---|---|---|
1 | Nevada | USAA 529 Education Savings Plan |
2 | Florida | Florida 529 Savings Plan |
3 | New Jersey | NJBEST 529 College Savings Plan |
Three-year rankings are based on a plan's average annual investment returns over the last three years.
State | Plan Name | |
---|---|---|
1 | South Dakota | CollegeAccess 529 (Direct-sold) |
2 | Wisconsin | Edvest 529 |
3 | Nevada | USAA 529 Education Savings Plan |
Five-year rankings are based on a plan's average annual investment returns over the last five years
State | Plan Name | |
---|---|---|
1 | Indiana | CollegeChoice 529 Direct Savings Plan |
2 | Florida | Florida 529 Savings Plan |
3 | Alaska | T. Rowe Price College Savings Plan |
10-year rankings are based on a plan's average annual investment returns over the last ten years.
State | Plan Name | |
---|---|---|
1 | West Virginia | SMART529 WV Direct College Savings Plan |
2 | South Carolina | Future Scholar 529 College Savings Plan (Direct-sold) |
3 | Ohio | Ohio's 529 Plan, CollegeAdvantage |