Tax returns or PFDs can be directly gifted to the 529 plan.
Instead of potentially squandering your federal tax return each April, why not contribute to one or more 529 accounts? Many states allow direct contribution on the refund to your or other’s 529 accounts.
Alaska residents can choose to invest their Permanent Fund Dividend (PFD)--an annual dividend paid out to eligible Alaska residents derived from the state's oil and mineral revenues–in 529 accounts.
Ulysses found out he gets an unexpectedly large tax return this April! He can use “Utah TC-40 part 6: Voluntary subtractions from Refund” to directly donate to his son’s account, claiming another tax credit for the upcoming year.
No statement or example on this site should be considered a specific recommendation for your personal situation. Investing and tax strategies each carry significant risks. Examples herein may not apply to your situation. Please consult your estate attorney, tax advisor, or financial advisor for personal advice.