529 Maximum Contribution Limits in 2024


529 Maximum Contribution Limits in 2024


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529 plans are one of the smartest tax-advantaged strategies to save for future education expenses, but you may wonder what the maximum contribution limit is for a 529 plan. According to the IRS, A 529 program must have “adequate safeguards” to prevent contributions beyond what is needed to pay for a benefactor’s education costs. However, every state has different rules.

What is the maximum annual 529 plan contribution limit?

Good news, while there is a maximum aggregate 529 plan contribution limit, there is no annual 529 plan contribution limit! However, only contributions up to $18,000 per donor per beneficiary will qualify as an annual gift tax exclusion. Excess contributions must be reported on IRS Form 709 and will not count toward an annual gift tax exclusion.

There is an option if you wish to treat a larger contribution as a gift divisible over 5 years. For example, an $80,000 contribution to a 529 plan can be treated as though it were $18,000 per year as long as no other gifts are made to the same beneficiary over the next 5 years. Learn more about how to leverage this estate planning strategy here.

What is the maximum aggregate 529 plan contribution limit?

Each state sets a different aggregate limit for 529 plan contributions based on the price of attending an expensive college and graduate program in that state. This limit is set for the total contributions to the 529 plan in a specific state for a single beneficiary over the life of the account but not necessarily for all 529 plans in a benefactor’s name. For example, if you were to open a 529 plan in New York and exceed the aggregate limit for that state, you could still contribute to a 529 plan in New Mexico. This rule also does not apply to investment earnings that push the account balance over the aggregate limit, only initial contributions.


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For more information about The Education Plan, call 1.877.337.5268 or view the Plan Description and Participation Agreement, which includes investment objectives, risks, charges, expenses, and other important information; read and consider it carefully before investing.

Please Note: Before you invest, consider whether your or the beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in that state’s qualified tuition program. You also should consult a financial, tax, or other advisor to learn more about how state-based benefits (or any limitations) would apply to your specific circumstances. You also may wish to contact directly your home state’s 529 plan(s), or any other 529 plan, to learn more about those plan’s features, benefits and limitations. Keep in mind that state-based benefits should be one of many appropriately weighted factors to be considered when making an investment decision.

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