I opened a collage 529 savings plan for my child. Several reletives have contributed money to the account. I am worried that the IRS will ask me how a got the money.
I opened a collage 529 savings plan for my child. Several reletives have contributed money to the account. I am worried that the IRS will ask me how a got the money.
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Well, anything can be questioned although usually the paperwork they send in the beginning says what areas they’re looking at, and unless something looks suspicious they probably won’t go beyond that.
Relatives are allowed to give you money, and unless the amount is huge, there’s no gift tax they have to pay. Gifts are non-taxable to you. So if they gave it to you to put into the 529, should be no problem. Or if they put it in directly – they’re allowed to do that, so shouldn’t be a problem.
Everything will probably be questioned.