Calculate Your 529 Superfunding Strategy
What is 529 Superfunding? Complete Guide for 2025
529 superfunding (also called 5-year gift tax averaging or front-loading) is a powerful strategy that allows you to contribute up to 5 years of annual gift tax exclusions to a 529 education savings plan in a single year. For 2025, with the annual gift tax exclusion at $19,000 per beneficiary, you can contribute up to:
- $95,000 per beneficiary for single filers ($19,000 × 5 years)
- $190,000 per beneficiary for married couples filing jointly
This strategy maximizes the tax-free growth potential of your education savings while avoiding gift tax consequences through proper Form 709 filing.
Accelerated Tax-Free Growth
By front-loading contributions, your money has more time to grow tax-free, potentially resulting in significantly higher account values.
Estate Planning Benefits
Superfunding removes assets from your taxable estate while maintaining control over the funds for qualified education expenses.
Flexibility
529 plans offer flexibility to change beneficiaries within the family and can now be rolled to Roth IRAs after 15 years.
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Start CalculatingFrequently Asked Questions
What happens if I die within the 5-year election period?
If you pass away during the 5-year election period, a pro-rata portion of the contribution is included back in your estate. For example, if you die in year 3, 40% (years 4 and 5) would be included in your estate.
Can I still make annual contributions after superfunding?
No, you cannot make additional contributions to the same beneficiary during the 5-year election period without potentially triggering gift taxes.
What are the 2025 contribution limits?
For 2025, the annual gift tax exclusion is $19,000 per beneficiary. With 5-year superfunding, you can contribute up to $95,000 ($190,000 for married couples) per beneficiary.