Are there yearly contribution limits to a 529 plan?

There are no yearly contribution limits to a 529 plan like certain retirement accounts. However, each state has a different aggregate contribution limit for each 529 account, typically between $235,000 and $550,000.

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.

How much can you contribute to a 529 account in 2024?

However, each state has a different aggregate contribution limit for each 529 account, typically between $235,000 and $550,000. You also might trigger the gift tax if you contribute more than $18,000 to a 529 account or multiple accounts with the same beneficiary in 2024.