Capitalize on IRS Gift Tax Exclusion Increase and 529 Education Savings Plan Contributions

For Immediate Release
Contact: Joanie Griffin

Santa Fe, NM – December 27, 2022 – Effective January 1, 2023, the federal annual gift tax exclusion increases to $17,000 for a single individual and $34,000 for married couples. For 529 plans, contributions of up to $85,000 for a single contributor (or $170,000 for married couples) can be made in a single year and applied against the annual gift tax exclusion equally over a five-year period. This is another great way to jumpstart a child’s or grandchild’s college savings account while utilizing gifting exclusions.

“This increase by the IRS comes at a pivotal time when tuition rates are increasing, and many are discussing and planning for the rising costs of higher education,” said Natalie Cordova, Executive Director of Education Trust Board of New Mexico, the organization that administers The Education Plan®, New Mexico’s 529 education savings plan. “With this change, parents, grandparents and loved ones can now invest more for the next generation.”

Studies show that students with as little as $500 saved for education are three times more likely to attend college and four times more likely to graduate, and with higher education linked to higher salaries, greater employment opportunities, and increased future success, saving for education expenses is a vital investment. The Education Plan® can also be used as a tool for estate planning while empowering future generations and helping to eliminate student loan debt. Contributions to a 529 account for a beneficiary are considered gifts, however the account owner retains full control over the account throughout their lifetime.

The Education Plan® offers additional tax benefits. Contributions are tax-deductible on some state income tax returns, earnings grow free of state and federal taxes, and withdrawals are tax-free when funds are used to cover qualified education expenses at universities, community colleges, trade schools, or vocational schools across the United States.

To learn more about The Education Plan® or to open an account today, visit


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For more information about The Education Plan, call 1.877.337.5268 or view the Plan Description and Participation Agreement, which includes investment objectives, risks, charges, expenses, and other important information; read and consider it carefully before investing.

Please Note: Before you invest, consider whether your or the beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in that state’s qualified tuition program. You also should consult a financial, tax, or other advisor to learn more about how state-based benefits (or any limitations) would apply to your specific circumstances. You also may wish to contact directly your home state’s 529 plan(s), or any other 529 plan, to learn more about those plan’s features, benefits and limitations. Keep in mind that state-based benefits should be one of many appropriately weighted factors to be considered when making an investment decision.

The Education Plan is administered by The Education Trust Board of New Mexico. Ascensus College Savings Recordkeeping Services, LLC, the Program Manager, and its affiliates, have overall responsibility for the day-today operations, including investment advisory, recordkeeping and administrative services. The Education Plan’s portfolios invest in: (i) mutual funds; (ii) exchange traded funds; and/or (iii) a funding agreement issued by New York Life. Investments in The Education Plan are not insured by the FDIC. Units of the portfolios are municipal securities and the value of units will vary with market conditions.

Investment returns will vary depending upon the performance of the portfolios you choose. You could lose all or a portion of your money by investing in The Education Plan depending on market conditions. Account owners assume all investment risks as well as responsibility for any federal and state tax consequences.

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The Education Plan® and The Education Plan® Logo are registered trademarks of The Education Trust Board of New Mexico used under license.

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Not FDIC-Insured. No Bank, State or Federal Guarantee. May Lose Value.