This means that you can contribute up to $14,000 per year, per beneficiary without incurring federal gift tax. So, if you contribute $17,000 to your son's 529 plan in a given year, for example, you'd ordinarily apply this gift against your $14,000 annual gift tax exclusion. Gifts made to a 529 account are completed gifts. Once the gift is invested in the 529 account, it is blended with all other contributions. If you choose to return a gift directly from the 529 account, be aware that the withdrawal will be treated like a distribution from your account. Donating stock to a 529 plan isn't allowed, but your cash contributions may qualify for a state tax break depending on where you live. Tax Deductions, 529 Plan Contributions Toggle navigation Menu