529 tax question(s)

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Edmonds_investor
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Joined: Sat Jun 23, 2018 3:45 pm

529 tax question(s)

Post by Edmonds_investor »

My wife and I superfunded one of our daughters' 529 plans--first with $75k in my name only (so, 15k over 5y), and then the following year with $30k in my wife's name only (so, 6k over 5y).

Questions about filing re: gifts to Daughter #1:
1. We outlined it this way on our 709 forms, but is it actually the case that if these funds were from a shared bank account that the IRS would consider both as 50/50 splits between both parents or is this partition, as we defined it, doable tax-wise?
2. Not having funded our daughter's 529 last year, but thinking about doing this this year, what is the requirement for Form 709 filing?
(a) Is a 709 filed only when new gifts are funded?
(b) When we do next file a 709, do we need to catalog past superfunding if the 5y are not yet up from past gifts? Or can we limit our reporting to just new gifts for the new tax year?

//

Now, for our other daughter, my wife and I followed a different pattern and funded $30k one year and $30k the next year (both times, 15/15 splits).

Last question (this time re: gifts to Daughter #2):
3. Is it the case that if we are funding gifts at the maximum allowable yearly contribution limit--but NOT superfunding--is mention of this annual gift technically required on Form 709? One source I read mentioned that even if we are not above the yearly limit (per parent), because of gift-splitting, Form 709 reporting IS still required. Is this everyone else's understanding too?
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