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Question for the Money Doctors

Question submitted on Jan 29, 2016.

Question

If you have already front loaded a 529 plan with 5 years of contributions, and after 5 years have past - Can you front load again with another 5 year contribution as a lump sum without affecting gift taxes?

Answer

Yes, if you maxed out the exclusion amount for each of the 5 prior years, you can do so again once the 5 year period expires.  Check your plan’s “lifetime limit” (if any), and be sure not to exceed it.


For additional information visit http://www.360financialliteracy.org/

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