How much can you contribute to a 529 plan?

That’s where it can get tricky since the IRS doesn’t specify annual 529 plan contribution limits, and many 529 plans offer high total contribution limits. There is no annual limit, but each state sets the aggregate limit for 529 accounts. The totals vary but could be as high as $550,000.

Do 529 plans have a lifetime contribution limit?

An important feature of 529 plans, which sets them apart from other investment accounts like Roth IRAs, is that there is no annual contribution limit. You may save as much as you want on an annual basis, though each 529 plan has a total lifetime contribution limit.

What is a state 529 limit?

The limits are intended to allow coverage of all college costs that are considered qualified higher education expenses. Once the combined balances of a beneficiary’s in-state 529 plans hit the state’s aggregate limit, no additional contributions can be made to any 529 plan administered by that state.