IRA and 529 contributions

[LBR]

A client (MFJ) has an AGI of $350,264.00 and taxable income of $288,542.00. He is S/E and contributes to a defined benefit plan. He is on an extension until 10/15/14. Can he contribute to a 529 plan for his grandkids with/out any tax ramifications? If so, does he have until 10/15/14 to make a contribution for tax year 2013?
I understand that he earns too much income to have his wife invest in and IRA.
Thank you,
Linda

[mastertaxguy]

529 Plans-1040 on Extention

Contributions to 529 plans are made on a calendar year basis. The extention to file is of no consequence. The contributions to such a plan are treated as a gift to the beneficiary(ies) and may require a gift tax return if the amount exceeds the annual exclusion which for 2014 is $14,000.00. There are special gift tax rules for contributions to 529 plans allowing a "spread out" of larger contributions (gifts) up to $70,000 to a 529 plan over a 5 year period.

There is NO Federal income tax deduction/adjustment or credit for taxpayers making contributions to 529 plans. Some states allow a deduction, subtraction or credit.