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Here’s what you need to know about 529 plan contribution limits. ... In 2025, you can contribute up to $19,000 per beneficiary per year before you need to file IRS Form 709.
Plus, 529 savings plan contributions can be invested, similar to the structure of a 401(k), and any investment profits used to pay for qualified education expenses are 100% tax-free.
Tax Treatment of 529 Plan Contributions. ... per year. Ohio-Maximum deduction of $4,000 per beneficiary per year ... cash and other gifts totaling $18,000 in a given year. With a 529 plan, the IRS ...
529 plans are named after section 529 of the Internal Revenue Code—26 U.S.C. § 529.While most plans allow investors from out of state, there can be significant state tax advantages and other benefits, such as matching grant and scholarship opportunities, protection from creditors and exemption from state financial aid calculations for investors who invest in 529 plans in their state of ...
529 Plan Tax Status: tax-deferred growth tax-free distributions tax-deductible contributions (varies by state) tax-deferred growth tax-free distributions Contributions: $2,000 limit per year per plan $500,000 to $235,000 per beneficiary (varies by state) [8] Distributions: qualified K-12 and post-secondary expenses
Contributions in a year are limited to the federal gift tax exclusion [11] for that year — $19,000 in 2025. If the beneficiary works and does not contribute to a 401(a) , 401(k), 403(b) , or 457 plan , the beneficiary can contribute an additional amount above that limit.
Image source: Getty Images. As of 2025, the contribution limits to 529 college savings plans range from a low of $235,000 to a high of $575,000. And here are the states with the highest ...
Some states offer deductions for 529 plan contributions up to certain limits. ... tax laws, you must complete Form 709 when doing your taxes if you contribute more than $19,000 each year to a 529 ...