I opened a 529 plan and my child is the beneficiary. If my mother makes a contribution to the plan, is that considered a gift to me or to my child?
Answer
It's considered a gift to your child. A contribution to a 529 plan is treated as a completed gift from the donor to the designated beneficiary of the account.
GE 37941 (03/07)
If you are investing in a 529 plan outside of your state of residence, you may lose available state tax benefits. Make sure you understand your state tax laws to get the most from your plan.
529 plans are subject to enrollment, maintenance, administration/management fees and expenses. 529 plans are subject to fluctuation in value and market rise, including loss of principal.
Investors should consider the investment objectives, risks, charges, and expenses of 529 plans carefully before purchasing. More information about 529 plans can be found in the issuer's official statement. Please read the official statement carefully before investing.
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