529 plan contribution limits for 2025 and 2026

Although there are no specific limits for contributing to a 529 plan, most people consider $19,000 The annual gift tax exclusion is the main contribution limit.

529 plans are tax-advantaged accounts that allow you to spend money on qualified education expenses. These plans are often called 529 college savings plans but apply to K-12 expenses as well. Eligible expenses include tuition, fees, food, and books.

There are more than one hundred and 529 plans across the United States. Although plans are state-specific, in most cases you do not have to be a state resident to invest in a 529 plan. 529 plans have different limits on contributions and states control these limits.

Let’s take a look at how 529 plan contribution limits work.

529 Plan Contribution Limits

What are the contribution limits for a 529 plan? They are based on gift tax guidelines.

In 2025, 529 plan contribution limit is $19,000 per contributor.

In 2026, the 529 plan contribution limit will remain the same:

Unlike retirement accounts, the IRS does not impose annual contribution limits on 529 plans. Instead, limits are based on total contributions and are controlled by states.

This means that anyone can contribute a large amount in one year as long as it does not exceed the total limit. Some states impose an annual limit on contributions. There can also be some obstacles to making such large contributions in one year, which we’ll get into later.
529 plan contribution limits are generally large. They range from $235,000 to $531,000. Here are some contribution limits for each beneficiary:

• Arizona – $531,000
• Georgia and Mississippi – $235,000
• North Dakota – $269,000
• Michigan, Maine, Idaho, Louisiana, South Carolina, Washington, and Washington, D.C. – $500,000
• California – $529,000

Most states offer multiple 529 plans and you may find that plans within the same state have different limits. For example, MO ABLE Missouri 529 Plan It has a total limit of $482,000 instead Most Missouri 529 education plans (Direct sale) maximum $325,000. However, both plans impose an annual contribution limit of $19,000.

You can open a plan in every state if you like.A family can have 529 plans in multiple states and use them to pay for college in any state. The total contribution limit in a state’s 529 plan does not take into account amounts held in 529 plans in other states.

If a household invests to the maximum in all states, Contributions can total up to $23.3 million per beneficiary.

When choosing a plan, you’ll need to check to see if there are overall limits or just annual limits as well. Also, do not be confused by any restrictions your state of residence may impose if you invest in an out-of-state plan. Any limits are imposed only by the plan in which you invest. If this is an out-of-state plan, your state of residence will have no say in the contribution limits to your 529 plan.

How do 529 plans work?

Gift tax considerations

Any money or property, including 529 plan contributions, that you give to someone will likely be considered a “gift” by the IRS. Fortunately, there is an annual gift tax exclusion of $19,000 per recipient in 2025 and 2026.

Even if you gift more than $19,000 per person per year, that will simply count toward the lifetime gift tax exclusion. You’ll have to donate $13.99 million over your lifetime before you have to pay gift taxes. Learn more about gift tax and who pays it.

Superfinance: The Five-Year Election

The 5-year election allows you to contribute up to $95,000 to an individual’s 529 plan in one year spread over 5 years. For each of the five years, you must report the five-year election IRS Form 709.

This is a great option to use if you expect expenses to rise during the first year. You will also be able to benefit from exponential growth.

How to choose a 529 plan

There are a few things to consider when choosing a 529 plan. 529 plans are almost always tax deductible at the federal level. Some states also provide state tax credits.

For states that impose income taxes, you will need to make sure that the tax savings are enough to cover the 529 plan fees. If not, keep in mind that you do not have to invest in your state’s 529 plan and that there are over a hundred 529 plans available to choose from.

Fees are a big consideration with 529 plans. These include annual account fees, management fees (or expense ratio) on funds, and loading fees. In addition to comparing fees, pay attention to any additional benefits included. For example, some 529 plans offer matching contributions.

Ready to start saving? Check out this guide to see the 529 options available in your state, benefits you may be eligible for, and our top recommendations.