Are there limits to 529 contributions?

There are also aggregate contribution limits. There are no annual contribution limits on how much you can contribute to a 529 plan. However, contributions to a 529 plan count as gifts for gift-tax purposes. Contributions beyond the annual gift tax exclusion may be subject to gift taxes.

How much can a grandparent contribute to a 529?

Beginning in 2018, each parent and grandparent will be able to contribute up to $15,000 annually per child and exclude these contributions from gift taxes. For example, a set of grandparents who are married, can make gifts of $30,000 to their grandchild’s 529 plan each year with no estate or gift tax consequences.

Is there a limit to how much you can contribute to a 529 plan?

As a result, most states have contribution limits of $300,000 and up (and most states will raise their limits each year to keep up with rising college costs). A state’s limit will apply to either kind of 529 plan: prepaid tuition plan or college savings plan. For a prepaid tuition plan, the state’s limit is a limit on the total contributions.

Are there limits on rollovers from 529 plans?

The regulations would provide that rollovers from 529 plans, together with any contributions made to the designated beneficiary’s ABLE account (other than certain permitted contributions of the designated beneficiary’s compensation) cannot exceed the annual ABLE contribution limit — $15,000 for 2018.

Is there 5 year tax averaging for 529 plan?

Tax law allows 5-year gift tax averaging only for gifting that involves 529 plans (and in rare situations, Coverdell education savings accounts). Here are a few rules and tips to keep in mind when considering superfunding a 529 plan. Wondering how your 529 plan may impact financial aid?

Can you contribute to a 529 plan in another state?

Contributions made to one state’s 529 plan don’t count toward the lifetime contribution limit in another state. But check the rules of your state’s plan to find out if that plan takes contributions from other states’ plans into consideration when determining if the lifetime contribution limit has been reached.