No Gift Taxes on California 529 Plans
Whenever you start up some California 529 Plans, you can fund a beneficiary up to $60 thousand without having to pay any type of gift taxes on it. However, the ruling that goes along with this one is pretty harsh. You are not able to give any more money for the next five years to that beneficiary. If there is any amount of money that exceeds this amount, then you are subject to pay taxes on it as this goes with California state law. This is why it’s a good idea to read all the fine print whenever you are thinking of opening one of these accounts. Also, it’s a good idea to think about how much money you are going to open an account with. Choosing the right amount of money now can save you a lot of hard times later down the road.