My boss contributes to my kid’s 529 plan, is this taxable?
If my employer agrees to help contribute to my kid’s 529 college savings account and the money goes directly into his account (e.g. not to me and then I deposit it), is this considered taxable income for me? My CFO is telling me that it’s considered taxable income, but this makes no sense to me if my employer agrees to give the money directly to my kid via their 529 account. And would it have to be $19,000 or less?
**EDIT for more context: my boss did this recently for another employee under a different CFO. It was considered a gift and a letter was written to that effect. This was not in my coworker’s paycheck. It was a one time gift straight into a 529 account. It was not reported as income. And because we have a new person dealing with this, he is being a bit more cautious to make sure that it is not considered taxable income because the intent is to help my child with his education. Hope this sheds a little more light on the situation**