Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Student Loans Maximum 529 Plan Contribution Limits by State Updated Feb 08, 2024 6-min read Expert Approved Expert Approved This article has been reviewed by a Certified Financial Planner™ for accuracy. Written by Taylor Milam-Samuel Written by Taylor Milam-Samuel Expertise: Student loans, credit cards, debt, budgeting Taylor Milam-Samuel is a personal finance writer and credentialed educator who is passionate about helping people take control of their finances and create a life they love. When she's not researching financial terms and conditions, she can be found in the classroom teaching. Learn more about Taylor Milam-Samuel Reviewed by Chloe Moore, CFP® Reviewed by Chloe Moore, CFP® Expertise: Equity compensation, home ownership, employee benefits, general finance Chloe Moore, CFP®, is the founder of Financial Staples, a virtual, fee-only financial planning firm based in Atlanta, GA, and serving clients nationwide. Her firm is dedicated to assisting tech employees in their 30s and 40s who are entrepreneurial-minded, philanthropic, and purpose-driven. Learn more about Chloe Moore, CFP® A 529 plan is an account that allows you to save for college expenses while minimizing your tax burden. Parents or grandparents often open accounts for minors to help prepare for education expenses. You open an account on behalf of any eligible beneficiary, including yourself. You contribute post-tax dollars, which means you pay income tax on the money when you contribute it to the account. After that, the money grows tax-free. As long as you use the funds to pay for eligible education expenses—such as tuition, fees, supplies, or room and board—you don’t pay any taxes on withdrawals. State agencies administer the plans, and nearly every state offers at least one plan option. You can select a 529 account in any state and use the funds at any institution. Each plan has slightly different rules, regulations, and maximums, however. Here is a closer look at the 529 maximums in each state. Table of Contents Skip to Section Do 529 plans have annual contribution limits?529 plan contribution limits by stateWhat happens if I contribute more than my 529 plan limit?FAQ Do 529 plans have annual contribution limits? 529 plans do not have annual contribution limits. You can contribute as much money as you want, but there are tax incentives to stay within the gift tax limits. In 2024, you can contribute up to $18,000 annually or $36,000 per married couple without paying any gift tax. Suppose you want to add more to the account. You can contribute up to five years’ worth of gift contributions at once—$90,000 as an individual or $180,000 as a married couple. But even though 529 plans do not have annual contribution limits, the accounts have aggregate limits. Aggregate limits determine the maximum amount you can contribute. The aggregate limits are usually around $500,000 per beneficiary, so there’s no workaround for opening separate accounts. The limits prevent account holders from overfunding an account with more money than is reasonably necessary. For example: Parents open a 529 account for their daughter. While their daughter is young, they contribute $1,000 or less yearly. But once their daughter is in high school, they contribute more—$180,000 in one year. Even though the amount is large, it does not reach the state’s $500,000 aggregate limit. Ask the expert Chloe Moore CFP® Just like saving for retirement, the longer you wait to save for college, the more you’ll have to save. There are several factors to consider when deciding how much to contribute to a 529 plan. Consider how much college expenses you’d like to cover for your child (full or partial) or whether you’d like to cover a certain type of school (like a public, in-state college or university). From there, you can get an idea of the total cost and calculate how much you’ll need to save to reach that goal based on your current savings and your child’s age. 529 plan contribution limits by state 529 plans have aggregate limits, the total amount you can contribute to the account per beneficiary. Limits vary by state and might impact the 529 plan you select. For example, Arizona has the highest limit of $575,000. Meanwhile, limits in Georgia and Mississippi are more than $300,000 less. Aggregate limits may impact which 529 account is the best fit. Because of that, it’s essential to understand how the aggregate limits work. Here’s how much you can save in a 529 plan in each state. StateAggregate 529 limitAlabama $475,000 Learn moreAlaska$550,000Learn moreArizona $575,000Learn more Arkansas$500,000Learn moreCalifornia $529,000Learn moreColorado $500,000Learn moreConnecticut $550,000Learn moreDelaware $350,000Learn moreFlorida $418,000Learn moreGeorgia$235,000Learn moreHawaii $305,000Learn moreIdaho $500,000Learn moreIllinois$500,000Learn moreIndiana $450,000Learn moreIowa $420,000Learn moreKansas $475,000Learn moreKentucky $450,000Learn moreLouisiana $500,000Learn moreMaine$520,000Learn moreMaryland $500,000Learn moreMassachusetts $500,000Learn moreMichigan $500,000Learn moreMinnesota$425,000Learn moreMississippi $235,000Learn moreMissouri $550,000Learn moreMontana $396,000Learn moreNebraska$500,000Learn moreNevada$500,000Learn moreNew Hampshire $569,123Learn moreNew Jersey $305,000Learn moreNew Mexico $500,000Learn moreNew York $520,000Learn moreNorth Carolina$550,000Learn moreNorth Dakota$269,000Learn moreOhio $523,000Learn moreOklahoma $450,000Learn moreOregon$400,000Learn morePennsylvania$511,758Learn moreRhode Island $520,000Learn moreSouth Carolina$540,000Learn moreSouth Dakota $350,000Learn moreTennessee$350,000Learn moreTexas$500,000Learn moreUtah$560,000Learn moreVermont $550,000Learn moreVirginia $550,000Learn moreWashington state $500,000Learn moreWashington, D.C. $500,000Learn moreWest Virginia $550,000Learn moreWisconsin $545,500Learn moreWyomingDoes not offer a 529 plan Do my 529 plan limits change if I move states? When you move states, you can continue to use your original 529 plan. You do not have to live in the state to utilize the plan. Your aggregate limit, account details, and investment options will remain unchanged. If you’re interested in switching plans when you move, you can likely roll over your balance to a 529 account in your new state. But you decide whether to keep or change your account to another state. What happens if I contribute more than my 529 plan limit? Most states have account maximums, meaning you cannot contribute more money once your account reaches or exceeds a specific balance. After the account hits the maximum, you can no longer make contributions. But your account might grow beyond the account maximum. For example, imagine you live in Arizona, and the aggregate limit for your 529 plan is $575,000. Over many years, you have contributed the maximum amount. Due to favorable returns, the balance grows to $650,000. The excess funds are due to market returns instead of contributions, so even though the account balance is larger than the aggregate total, you have not contributed more than the maximum. Starting in 2024, you can roll unused 529 funds into the account beneficiary’s Roth IRA without incurring any taxes or penalties. This rollover is subject to a lifetime limit of $35,000, with several rules to consider. Chloe Moore CFP® FAQ Who can contribute to a 529 plan? Anyone can contribute to a 529 plan. Parents, grandparents, relatives, and friends can fund these education savings accounts. The person who establishes the account, also known as the account owner, can control it. No income restrictions exist for contributors, and the contributions are not deductible on federal tax returns. Do 529 plans affect financial aid eligibility? Yes, 529 plans can affect financial aid eligibility. But the impact is generally minimal. A parent owning the 529 plan is considered a parental asset on the Free Application for Federal Student Aid (FAFSA). Student aid is reduced by as much as 5.64% of the asset’s value. If anyone else, such as a grandparent, owns the account, it isn’t reported as an asset on the FAFSA. But when money is withdrawn to pay for college, it’s treated as untaxed income to the student and can affect aid eligibility more. Who controls how 529 plan funds are spent? The account owner, typically a parent or grandparent, controls how 529 plan funds are spent. The plan provides flexibility. You can use the funds for qualified education expenses, such as tuition, fees, books, supplies, and room and board at any eligible educational institution. But remember, using the money for nonqualified expenses can result in income tax and a 10% penalty on earnings, so it’s crucial to use the money wisely to benefit the student. If your child does not attend college, there are several options to avoid taxes and withdrawal penalties. One of the easiest ways is to transfer unused funds to a qualifying family member, such as another child who will attend college. Chloe Moore CFP® Read More 529 Plan vs. Savings Account