Do my contributions to CollegeChoice CD qualify as a gift under federal law?
Yes. The Code provides that payments to an Account are completed gifts for federal gift tax purposes and are eligible for the applicable annual exclusion from gift and generation skipping transfer taxes ($13,000 for a single individual or $26,000 for a married couple making a proper election). Under certain conditions, you can contribute up to $65,000 immediately ($130,000 for married couples) and apply the contribution against the annual exclusion equally over a five-year period.
