If you contribute $15,000 a year or less, you’ll qualify for the annual federal gift tax exclusion. However, under special rules unique to 529 plans, you can avoid the federal gift tax if you gift a lump sum of up to $75,000 ($150,000 for joint gifts) and choose to spread the gift evenly over five years. Married couples may contribute as much as $30,000 per year or $150,000 as a lump sum.
How much can be invested each year?
Articles in this section
- How do I change my investment (portfolio) option?
- Are my Backer investment gains taxed?
- Why we recommend Age-Based Funds?
- How many times a year can I change my investment options?
- How will fees affect my investment? If I give you $10,000 to invest, how much will go to fees?
- Where is my money held and who manages the investments?
- Can I change my portfolio allocation?
- Will my investment be FDIC-insured?
- Can I claim any tax credits or deductions for my Backer contributions?
- How much can be invested each year?