In 2014, grandparents contribute jointly owned funds to a § 529 qualified tuition plan on behalf of their granddaughter. The maximum annual exclusion allowed to them is $140,000 ($28,000 × 5 years).

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This statement is correct. The annual exclusion for 529 plans in 2014 was $14,000, but a special provision allowed grandparents to elect to spread the gift over five years (i.e. $28,000 per year) without triggering gift tax or reducing their lifetime gift exemption. Therefore, the maximum exclusion allowed to grandparents jointly contributing to a 529 plan in 2014 was $140,000.

In 2014, Grandparents Contribute Jointly Owned Funds to a §