There are no income limits on 529 plan contributions, so they’re available to everyone. You’re also allowed to contribute quite a lot. Most plans simply have a total contribution limit that’s usually in the $200,000 to $400,000 range.
There’s technically no annual contribution limit, though in most cases it’s a good idea to stay within the limits of the annual gift tax exclusion. For 2016, that means that each parent can contribute up to $14,000 for each child without gift tax implications. If you’re married, that means up to $28,000 per year for each child.
There’s even a rule that allows you to contribute up to five times that amount in a single year if you’d like. In other words, if you want to contribute a lot of money towards college, a 529 plan is a good way to do it.
There’s technically no annual contribution limit, though in most cases it’s a good idea to stay within the limits of the annual gift tax exclusion. For 2016, that means that each parent can contribute up to $14,000 for each child without gift tax implications. If you’re married, that means up to $28,000 per year for each child.
There’s even a rule that allows you to contribute up to five times that amount in a single year if you’d like. In other words, if you want to contribute a lot of money towards college, a 529 plan is a good way to do it.
