529 Gift Tax Loophole?

Cox Automotive / Mgmt
EMlN12

Go to company page Cox Automotive Mgmt

EMlN12
Dec 5, 2020 33 Comments

What am I missing?

1) Create a 529 for yourself, not your kid.
2) Contribute $500,000. The Vanguard 529 Plan maximum contribution limit is $500,000.
3) Change the beneficiary from yourself to your kid. A 529 plan account owner may change the beneficiary at any time without tax consequences when the new beneficiary is a family member of the current beneficiary.
4) Success, you’ve bypassed Gift Tax contribution restrictions.
5) Rinse and repeat for each kid.

Goal: Maximize 529 account balance day 1.

TC: $300K and GTFO

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