529 Contribution Limits for a Married Couple

A 529 plan is a tax-advantaged savings vehicle designed to encourage saving for future education costs. The primary benefit of these plans is that investments can grow free from federal income tax, and withdrawals are also tax-free when used for qualified education expenses. These expenses can range from college tuition and fees to room and board, and even up to $10,000 per year for K-12 tuition. Understanding the contribution rules is important for using these plans effectively, especially for married couples who have distinct options for maximizing their savings.

Annual Contribution Limits for Married Couples

Contributions to a 529 plan are treated as completed gifts for federal tax purposes. This means they are subject to the annual gift tax exclusion, which is the amount an individual can give to any other single person in a year without having to file a gift tax return. For 2025, the annual gift tax exclusion is $19,000 per donor, per recipient. This limit is not per plan, but per beneficiary.

A married couple can leverage a provision known as “gift splitting” to double their contribution power. Even if only one spouse makes the contribution, they can elect to treat the gift as if each spouse contributed half. This allows a married couple to jointly contribute up to $38,000 ($19,000 from each spouse) to a single beneficiary’s 529 plan in 2025 without owing any gift tax.

This per-beneficiary limit allows couples to make contributions for multiple children in the same year. For instance, a couple with two children could contribute up to $38,000 to each child’s separate 529 account, for a total of $76,000 for the year. This strategy enables significant funding of education accounts while remaining within the annual federal gift tax exclusion rules.

Accelerated Contributions Using the Five-Year Election

Federal tax law provides a strategy for those wishing to make a large, upfront contribution to a 529 plan. This rule allows a contributor to make a lump-sum payment equivalent to five years’ worth of annual gift tax exclusions at one time. For an individual in 2025, this means they can contribute up to $95,000 ($19,000 multiplied by five) into a single beneficiary’s 529 account in a single year.

Married couples can combine their individual five-year elections to make a joint contribution of up to ten times the annual exclusion amount. By utilizing gift splitting, a couple can contribute up to $190,000 ($95,000 from each spouse) to one beneficiary’s account in one year. This “superfunding” option can provide a head start on education savings, allowing the funds more time to grow tax-free.

Making this election means no additional gifts, including further 529 contributions, can be made to that same beneficiary over the subsequent four years without triggering gift tax reporting and reducing the donor’s lifetime gift tax exemption.

State-Determined Aggregate Contribution Limits

While federal gift tax rules govern how much can be contributed annually without tax implications, the total amount an account can hold is determined at the state level. Each state that sponsors a 529 plan sets its own aggregate contribution limit. This figure represents the maximum allowable balance for a single beneficiary’s account, after which no further contributions will be accepted.

These aggregate limits vary significantly, with some plans capping accounts around $235,000 and others allowing balances to exceed $575,000. The limit is not a cap on earnings; the account can continue to grow through investment performance even after the contribution limit has been reached. The purpose of these limits is to approximate the expected total cost of a beneficiary’s qualified higher education expenses.

Because these maximums are plan-specific, contributors should check the official disclosure documents for the particular 529 plan they are using. These documents will contain the specific aggregate contribution limit.

Gift Tax Filing Requirements for Contributions

The requirement to file a federal gift tax return, IRS Form 709, depends on the size and nature of the contribution. For an individual, no filing is necessary for contributions to a single beneficiary that do not exceed the $19,000 annual exclusion for 2025.

However, filing Form 709 is mandatory in certain cases, even if no tax is owed. This includes any year where a contributor’s total gifts to an individual exceed the annual exclusion. It is also required when a married couple splits a gift to combine their annual exclusions or when any contributor makes a five-year accelerated contribution.

Filing the return does not automatically mean that a tax payment is required. Any amount contributed above the annual or five-year election limits is applied against the contributor’s lifetime gift and estate tax exemption. For 2025, this exemption is $13.99 million for an individual, meaning the vast majority of people who file Form 709 for 529 contributions will not owe any gift tax.