US Tax Tools

Form 709 Five-Year 529 Election

Rules to apply

  1. 01

    The election applies ratably over five calendar years beginning with the contribution year.

  2. 02

    A Form 709 is used to make the election even when no current gift tax is due.

  3. 03

    Additional gifts to the same beneficiary can use remaining annual exclusion, if any, but must be tracked across the election period.

Example

A $95,000 contribution in 2026 can be elected as $19,000 in each of 2026 through 2030 for annual-exclusion purposes, assuming one donor and no other gifts to that beneficiary.

Sources

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