Personal Finance (Not Investing) • 529 and ABLE account interplay

Yes, I understand about the annual contribution limits for the Able account. Thank you. So many moving parts and limits!

I'm unclear about one thing you mentioned earlier:

Once the 529 is spent, I will contribute money from a special needs trust into the 529 ABLE up the max contribution. That of course will result in taxable income of gains taxable to the beneficiary but shouldn't be that much in a low beneficiary bracket.

We haven't set up a special needs trust yet, but once we do, I assume it is taxed at the beneficiary's tax rate? And when a contribution is made to the Able account from the SNT, only the income is taxed?

Statistics: Posted by SweetTooth — Wed Dec 27, 2023 1:15 am — Replies 10 — Views 662

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