Check out some similar questions!

DCResident1806 · Jul 31, 2014, 01:41 PM

Hi Everyone,

I would like to open an 529 account for myself . My question is that if I am the account owner as well as the beneficiary, does the gift tax rule apply in my case ? In other words, can I deposit a lump-sum of $80,000 when I open the 529 account without incurring any gift tax rule? And do I have to file Form 709 in that year? As I understand, a person can't give gift to himself, am I right?

Any suggestion or thoughts would be greatly appreciated. Thank you.

Sincerely,
Eric

ebaines · Jul 31, 2014, 02:21 PM

Yes, you can set up a 529 plan naming yourself as beneficiary. And no, there are no gift tax issues - no need to file a Form 709. The IRS doesn't set any rules on how much you can put into a plan in a given year, but many states do, and since the states run these plans you will need to check the rules for the state where you are thinking of setting up your plan to see what the limits are, if any.

DCResident1806 · Jul 31, 2014, 07:16 PM

Thanks a lot.

DCResident1806 · Aug 1, 2014, 06:04 AM

Hi ebaines, sorry to bother you again. I have a following up question. I totally agreed with you because that's what I thought too. But I could not confirm it anywhere. Do you know any IRS rulings on this issue? Thank you.

ebaines · Aug 1, 2014, 07:58 AM

There are no rulings because it's never been disputed. For reference see this: 529 Plans: Questions and Answers Note the following, about half way down the page:

Q. Can anyone set up a 529 plan?
A. Yes. You can set one up and name anyone as a beneficiary — a relative, a friend, even yourself.