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[quote=Anonymous][quote]Which state? We put the money into the 529 and pull it out right away to pay tuition, effectively using outside funds but funneling it through the 529 for the tax benefit. In Virginia you can put in 34K [b]without worrying about gift tax[/b] and get a 5.75% tax rebate. If you live in VA, I'd spend down the 529 first and then fund/pull to pay tuition.[/quote] Tuition and medical costs are not considered gifts.[/quote]
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