What Are the 529 Contribution Limits?

A 529 plan is a tax-advantaged savings vehicle designed to help families set aside funds for future education costs. These state-sponsored accounts allow contributions to grow without being subject to federal taxes, and withdrawals for qualified education expenses are also tax-free. The primary purpose is to make saving for college, vocational school, or K-12 tuition more manageable. While the goal is straightforward, the contribution process is governed by specific rules that determine how much can be deposited.

Annual Contribution Limits

The most immediate contribution consideration for a 529 plan is not a limit set by the plan itself, but one tied to federal tax law. Contributions are considered completed gifts for tax purposes, which means they are subject to the annual gift tax exclusion. For the 2025 tax year, an individual can contribute up to $19,000 to a beneficiary’s 529 plan without gift tax consequences. This amount is indexed for inflation and can change in future years.

This limit is applied on a per-donor, per-beneficiary basis. This means a person could give $19,000 to their child, $19,000 to a grandchild, and $19,000 to a niece in the same year. Since the limit is per donor, a married couple can combine their individual exclusions to contribute up to $38,000 to a single beneficiary’s account in 2025.

This $19,000 threshold includes all gifts made to that beneficiary from that donor during the year, not just 529 contributions. If a grandparent gives a grandchild a $5,000 cash gift and also wants to contribute to their 529 plan, the maximum plan contribution they could make that year without exceeding the exclusion would be $14,000.

The Five-Year Superfunding Rule

A unique provision for 529 plans allows for an acceleration of savings through a method called “superfunding.” This rule permits a contributor to make a large, lump-sum contribution and treat it for gift tax purposes as if it were made evenly over a five-year period. For 2025, this means an individual can contribute up to $95,000 at one time, which is five times the $19,000 annual exclusion. A married couple can jointly contribute up to $190,000.

To use this strategy, the contributor must file Form 709, the United States Gift Tax Return, for the year the large contribution is made, specifying the five-year election. This filing is informational and does not mean taxes are owed; it simply documents the election.

The primary consequence of superfunding is that the contributor cannot give any additional gifts to that same beneficiary over the subsequent four years without triggering gift tax reporting. For example, if a parent contributes $95,000 in year one, they have used their $19,000 exclusion for that beneficiary for years one through five. Giving that same child a car worth $10,000 in year three would be a taxable gift because the annual exclusion for that year has already been allocated.

Aggregate Contribution Limits

Separate from annual federal gift tax considerations, 529 plans have their own overall maximum contribution limits. These limits are not set by the federal government but by the individual state that sponsors the plan. This aggregate limit is the total value an account is permitted to reach for a single beneficiary; once this cap is hit, no further contributions can be made.

These state-mandated limits vary widely, with amounts ranging from $235,000 to more than $575,000. The specific amount is linked to the projected costs of attending expensive undergraduate and graduate programs, ensuring the account can cover a full education. The limit applies to the total balance of the account, including both contributions and investment earnings.

Account owners should check the specific rules of their 529 plan, as the plan’s official disclosure documents will state the exact aggregate limit. If a beneficiary has multiple 529 accounts, some states require the balances of all accounts for that beneficiary to be combined when determining if the limit has been reached.

Gift Tax Reporting for Excess Contributions

When a contributor’s gifts to a single beneficiary exceed the annual exclusion amount in a year, and they do not elect the five-year superfunding option, a tax filing is required. The donor must file IRS Form 709, the United States Gift Tax Return, for the year the excess contribution was made. This form is used to report taxable gifts to the IRS.

For instance, if an individual contributes $25,000 in 2025, they would report a taxable gift of $6,000 ($25,000 minus the $19,000 exclusion). The deadline for filing Form 709 is April 15 of the following year.

Filing this form does not result in an immediate tax bill. The reported excess amount is subtracted from the donor’s lifetime gift and estate tax exemption, which for 2025 is $13.99 million per person. A gift tax is only owed if a person’s cumulative lifetime taxable gifts exceed this exemption amount. The primary function of Form 709 is to track the use of that lifetime credit.