SIE Exam Question 791: Answer and Explanation

Question: 791

What is the maximum contribution a donor can make in a single year to a 529 plan if the gift tax annual exclusion is $15,000? Assume the donor has not made previous contributions to a 529 plan.

• A. $15,000
• B. $30,000
• C. $75,000
• D. $105,000

Correct Answer: C

Explanation:

5 × $15,000 = $75,000

A donor may contribute a total of five gift tax annual exclusion amounts on a one-time basis every five years to a 529 plan.