Overcontributed to 529 account

[chromebox]

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?

[Anonymous_]

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

[dmertz · Accepted solution]

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?

[chromebox]

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!