What are the contribution limits for a 529 plan?

What are the contribution limits for a 529 plan?

The contribution limits for a 529 plan can vary by state, but generally, there is no annual limit. However, contributions are subject to a lifetime limit, often around $300,000 to $500,000.

Can I contribute to a 529 plan for my child and my niece?

Yes, you can contribute to multiple 529 plans for different beneficiaries, such as your child and your niece. Just keep in mind the overall contribution limits.

Are there tax benefits for contributing to a 529 plan?

Yes, contributions to a 529 plan may be tax-deductible on your state income tax return, and the earnings grow tax-free.

What happens if I exceed the contribution limit?

If you exceed the contribution limit, you may face gift tax implications. It's important to monitor your contributions to avoid penalties.

Can I change the beneficiary of a 529 plan?

Yes, you can change the beneficiary of a 529 plan to another eligible family member without tax penalties.