Noah and Sophia want to make a maximum contribution to their state's qualified tuition program (Code 529 plan) on behalf of their minor granddaughter, Amanda, without exceeding the annual Federal gift tax exclusion. a. How much can they transfer to the plan for Amanda without incurring a current Federal gift tax? x Feedback vheck My Work For income tax and gift tax purposes, 529 plans possess attributes that reflect the best Federal income tax deduction is allowed, income earned by the fund accumulates free of are used for higher education purposes. A special provision allows a donor to enjoy a gift exclusion