Opening an Alaska 529 account for loved one
Do you have a loved one you want to help with their future? Below are some tips on how to help:
- Contributions to an Alaska 529 are removed from your taxable estate and considered a gift to the beneficiary. However, you retain control of the assets.
- You can select investment options best suited for helping your loved one achieve their education goals.
- You can adjust your contributions as needed.
- You control when distributions are taken.
- You determine if and when the beneficiary is ready to manage his or her account.
- For 2023, the maximum annual gift amount is $17,000 per individual per year without paying gift taxes. With a 529, you can contribute up to $85,000 (or $170,000 for a married couple) to a beneficiary in one year and average the gift over five years without paying gift taxes, as long as no other gifts are made to the beneficiary during the five-year period. Consult a tax professional for details, as gift and estate taxes can be complex.