529 Max Contribution

[Anonymous]

The max contribution for a 529 in 2024 is $36k for a married couple. Do you know what happens if you contribute more than the max in 2024?

[Anonymous]

Look into superfunding a 529.

[Anonymous]

Anonymous wrote:The max contribution for a 529 in 2024 is $36k for a married couple. Do you know what happens if you contribute more than the max in 2024?

$36k is the max for a couple to avoid going over the gift tax exclusion in a year. But all that means is you need to report it to the IRS and track for the totally separate lifetime gift tax exemption, which is....$26 million to a single person from a couple. So you probably aren't getting to close to that. If you go over $36k, you have to report it on your taxes (there is a separate form), but there are no tax implications. As the first reply says, you can "bunch up" 5 years worth of max contributions and it doesn't need to be reported, as long as you don't exceed the total $180k over 5 years.

https://smartasset.com/investing/529-plan-contribution-limits

Each state also has max contributions total.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The max contribution for a 529 in 2024 is $36k for a married couple. Do you know what happens if you contribute more than the max in 2024?

$36k is the max for a couple to avoid going over the gift tax exclusion in a year. But all that means is you need to report it to the IRS and track for the totally separate lifetime gift tax exemption, which is....$26 million to a single person from a couple. So you probably aren't getting to close to that. If you go over $36k, you have to report it on your taxes (there is a separate form), but there are no tax implications. As the first reply says, you can "bunch up" 5 years worth of max contributions and it doesn't need to be reported, as long as you don't exceed the total $180k over 5 years.

https://smartasset.com/investing/529-plan-contribution-limits

Each state also has max contributions total.

This. Great explanation. Superfund and then the parents don't put any more money in for 5 years. However grandparents/other relatives can.

[Anonymous]

OP here. Thanks everyone. One more question. Spouse and I have been fudnign529 from a joint account. Sometimes we file taxes separately, whichever saves us more that year. Will this cause any issue? Do we need to be funding from accounts that just have one of our names in the years we file separate?

[Anonymous]

Anonymous wrote:OP here. Thanks everyone. One more question. Spouse and I have been fudnign529 from a joint account. Sometimes we file taxes separately, whichever saves us more that year. Will this cause any issue? Do we need to be funding from accounts that just have one of our names in the years we file separate?

I doubt the IRS is looking so closely. You can make a separate gift to the 529 plan each from the joining account. If you get audited, just keep a record to show you didn't individually or collectively exceed the gift tax limit without filing the proper form for superfunding.