How much is a 529 plan contribution limit?

Each state sets 529 plan contribution limits, which range from $235,000 to $575,000. When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works. A 529 plan is a state-sponsored account that offers tax-advantaged savings to cover college, trade and vocational courses and qualified K-12 expenses.

What is a 529 plan?

A 529 plan is a savings plan that can provide tax-free investment growth and withdrawals for qualified education expenses. 529 plans have high contribution limits, which are generally intended to be enough to cover the cost of college.

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.