529 Assets Are Removed from the Estate, yet You Retain Control
Contributions to your 529 account are considered a completed gift to the Beneficiary for federal gift and estate tax purposes, therefore removed from your estate. Better yet, you still retain full control of the account(s) and the funds – how they’re invested, why and when they’re withdrawn, and who receives the funds.
Most other investment options rescind your control when removed.
High Contribution Levels
The maximum contribution level in Colorado is $400,000 per Beneficiary (across all accounts for that Beneficiary). Think of all of the extended opportunities you may have with multiple Beneficiaries.
The Annual Gift Tax Exclusion
Your contributions qualify for the $15,000 annual gift tax exclusion ($30,000 for couples), per Beneficiary in 2018.
If you change the Beneficiary to another qualified family member of the same generation, no further gift is involved.
The 5-Year Election
You also have the option to make a lump sum contribution up to $75,000 (5-years at $15,000 for each year) to get the immediate benefit of five years’ worth of gift tax exclusions. As a couple, you can double the impact to $150,000 for each and as many Beneficiaries as you have accounts. And, you can repeat the opportunity every 5 years.
For more information on this option, go to FAQs
