Gift Tax Exclusions Provide Opportunity for 529 Plan Contributors

For Immediate Release
Contact: Joanie Griffin

As families look for ways to fund higher education, 529 education savings plans have become a popular choice. As both education costs and student loan debt continue to rise, 529 education savings plans can be a valuable tool.

A contribution to a 529 plan is considered a completed gift from the contributor to the beneficiary for gift tax purposes. Effective January 1, 2024, the federal annual gift tax exclusion increased from $17,000 in 2023 to $18,000 for a single individual and from $34,000 to $36,000 for married couples filing jointly. To empower families and encourage education savings, the Internal Revenue Service (IRS) offers valuable provisions related to gift taxes. For 529 plans, contributions in 2024 of up to $90,000 for a single contributor (or $180,000 for married couples filing jointly) 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 education savings account while utilizing gifting exclusions. With this increase in limit, families can invest more for the next generation.

The Education Plan® is a tax-advantaged 529 education savings plan sponsored by New Mexico that can be used to pay for education expenses at universities, colleges, trade schools, and professional schools throughout the United States. 529 plans offer flexibility, allowing funds to be used for a variety of qualified education expenses including tuition, room and board, books, fees and computer equipment at eligible educational institutions nationwide and even some international schools. Funds may also be used to pay for K-12 tuition and apprenticeship expenses.

"The Education Trust Board is committed to providing options to assist families to save for future education," said Natalie Cordova, Executive Director of the Education Trust Board of New Mexico, the organization that administers The Education Plan®. "A 529 education savings plan is a great way for families to maximize contributions and minimize long-term debt when funding future education.”

For more information on The Education Plan® and its tax advantages, please 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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