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Are there yearly contribution limits to a 529 plan?

There are no yearly contribution limits to a 529 plan like certain retirement accounts. However, each state has a different aggregate contribution limit for each 529 account, typically between $235,000 and $550,000.

Are 529 plans a good way to save for college?

Saving for your kid’s college costs can seem daunting, but 529 plans could be a fairly simple way to prepare for those bills. These tax-advantaged accounts have high contribution limits that allow you to stash away savings for higher education. Here’s a look at 529 contribution limits for 2024, plus ways you could maximize your contributions.

What is a 529 plan?

A 529 plan is a savings plan that can provide tax-free investment growth and withdrawals for qualified education expenses. 529 plans have high contribution limits, which are generally intended to be enough to cover the cost of college.

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