Footnote 1 Contributions during 2023 between $17,000 and $85,000 ($34,000 and $170,000 for married couples electing to split gifts) made in one year can be prorated over a five-year period without subjecting you to gift tax or reducing your federal unified estate and gift tax credit. If you contribute less than the $85,000 ($170,000 for married couples electing to split gifts) maximum, additional contributions can be made during the five-year period without you being subject to federal gift tax, up to a prorated level of $17,000 ($34,000 for married couples electing to split gifts) per year. Gift taxation may result if a contribution exceeds the available annual gift tax exclusion amount remaining for a given beneficiary in the year of contribution. For contributions between $17,000 and $85,000 ($34,000 and $170,000 for married couples electing to split gifts) made in one year, if the account owner dies before the end of the five-year period, a prorated portion of the contribution may be included in their estate for estate tax purposes. Please consult your tax and/or legal professional for such guidance.
Footnote 2 To be eligible for the favorable tax treatment afforded to any earnings portion of withdrawals for Section 529 accounts, withdrawals must be for "qualified higher-education expenses," as defined in the Internal Revenue Code.
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