What are the federal gift tax considerations of contributing to the DC College Savings Plan?
No federal gift tax will be imposed on an Account Owner if contributions to an Account for a Beneficiary, together with all other gifts by the Account Owner to the Beneficiary, that year, do not exceed $12,000 or $24,000 for a married individual who elects to split gifts with his or her spouse. If an Account Owner’s contributions to Accounts for a Beneficiary in a single year exceed $12,000, the Account Owner may treat contributions up to $60,000 as having been made ratably over a five-year period. (If the contributor dies within five years of the date the money was gifted, the portion of the contribution allocable to the remaining years in the five-year period (not including the year in which the contributor died) would be includible in computing the contributor’s gross estate for federal estate tax purposes. Please consult your tax advisor).
Related Questions
- Can I contribute to a DC College Savings Plan account and another education savings account, such as a Coverdell Education Savings Account, in the same year?
- Can I roll over my funds from another states college savings plan into the DC College Savings Plan?
- What are the federal gift tax considerations of contributing to the DC College Savings Plan?
