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FOR PROFESSIONALS
Gift tax center
Example 2
The facts are the same as Example 1, except that John does not receive Mary’s consent to split gifts. Since John’s 529 contribution for Stephen exceeds his $14,000 annual gift exclusion, a taxable gift of $6,000 is created, unless the five-year election is employed to reduce the gift. (Even if a $6,000 taxable gift is reported, John would probably not have to actually make a tax payment, as he has a $5.25 million lifetime exemption to apply against cumulative taxable gifts.)
John decides to make the five-year spreading election for his 529 contributions to Stephen’s 529 account. The effect of this election is to reduce his gifts to Stephen in 2013 to $4,000 ($20,000 divided by five). Since this gift is now below the $14,000 annual exclusion, John has no taxable gifts in 2013. However, John is now considered to have made a gift of $4,000 to Stephen in each year 2013 through 2017, and that amount must be factored in when determining if John has any taxable gifts to report in any of those future years.
See Filled-in Form 709 HERE.
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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 |