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Tax 6 min read
What is 529 superfunding? (And should you do it?)
The 529 superfund election lets you front-load five years of gift-tax-free contributions in a single year. Here's the math, the gotchas, and when it makes sense.
The annual gift-tax exclusion for 2026 is $19,000 per recipient. A 529 lets you 'superfund' — contribute up to five years of that exclusion in one year, without using your lifetime gift tax exemption. That's $95,000 individually or $190,000 as a couple, per child.
When superfunding makes sense
It's a powerful estate-planning move for grandparents who want to move assets out of their estate quickly. It's also useful for parents who got a windfall (bonus, sale, inheritance) and want to lock in tax-free growth on a chunk of it.