New client contributed $60k to his child's NYS 529 in 2020. Prior firm prepares the 709 showing 1/5. I know the 709 has to be prepared for the next 4 years to show the 529 (c)(2)(b) election. In 2021, he makes another contribution for the same child for $15k. He told me he broke up the $75k 2020 max contribution so he could take the $5k NYS deduction in 2020 and 2021. From what I've read, the 2021 $15k contribution cannot be spread over 5 years. Would he have a "taxable" gift of $12k in 2021? ($12,000 election + $15,000 2021 gift - 2021 $15k exclusion)
28-Mar-2022 12:22pm
