topic Overcontributed to 529 account in Get your taxes done using TurboTax

Overcontributed to 529 account

chromebox — Mon, 23 Feb 2026 10:57:55 GMT

I realized that I overcontributed to my child's 529 account in 2021.

I assume I need to pay a penalty of some kind as a result. Is preparing the proper filing and assessing the penalty something TurboTax will help me with as part of my return?

Or should I consult a tax professional separately and/or do something else to correct this error?

Re: Overcontributed to 529 account

Anonymous_ — Tue, 10 Jan 2023 21:11:54 GMT

Stay tuned, I will page @dmertz who can most likely help.

Re: Overcontributed to 529 account

dmertz — Tue, 10 Jan 2023 21:22:22 GMT

In what way did you overcontribute? There is no contribution limit, but if you exceed the annual gift-tax exclusion amount then you'll need to file a gift-tax return, Form 709. The amount that you are over the annual exclusion amount will add to your lifetime total for estate- and gift-tax purposes.

Or are you asking about a state aggregate limit?

Re: Overcontributed to 529 account

chromebox — Tue, 10 Jan 2023 23:18:50 GMT

Whoops. I meant 2022.

You're right. I contributed more than the federal limit related to gift taxes.

Thank you for the pointer to the 709. That makes sense. I was able to find the form and instructions.

Thank you so much!