Q. Now, is anything in that analysis different now in 2025-2026?
A. Simple answer: No. The major change was for K-12 education, not college.
For a details, "google" big beautiful bill 529 plan c...
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Q. Now, is anything in that analysis different now in 2025-2026?
A. Simple answer: No. The major change was for K-12 education, not college.
For a details, "google" big beautiful bill 529 plan changes. The AI explanation is good.
Q. What about contribution limits?
A. There's no change on contribution limits. There is no limit on how much you can contribute. But, if you exceed the gift tax limits, you may have to file a gift tax return.
You can make a 5-year contribution to a 529 plan by contributing up to five times the annual gift tax exclusion amount at once, a process called "superfunding". For 2025, this means an individual can contribute up to $95,000 (five times the $19,000 annual limit) to a beneficiary's account in a single year. A married couple can double that. You cannot make further gifts to that same beneficiary for the next five years without them counting against your lifetime gift tax exemption.
"Gift Tax" is somewhat of a misnomer. Even though a gift tax return may be required, very few people ever actually pay federal gift tax. The purpose of the gift tax return is usually only to document a reduction in the allowable estate tax exemption