The Best 529 Plans Blog

529 Contributions Limits

Description: Contribution limits are typically quite high but there is a sub-segment of rules to be aware of, notably the minimum contribution amounts.

1. Ceiling Limits: The only thing to understand here is what the maximum allowed contribution is into the state’s plan. If you plan on putting away $400,000 over the course of 17 years and the state you’ve selected has a limit of $350,000, then there’s a gap.

2. Floor or Minimum Increment: Some states require you to start the 529 with a minimum amount so be sure you can cover the amount based on the plan you select. Also, some states will require you to meet a minimum amount on each contribution so if you setup an automated contribution from your bank account, be sure that the amount being pulled covers the minimum.

==================================

Ready to Reach you College Savings Goals? Get a Free Consultation from the Most Trusted and Risk Free Advisors in the Market – LotusGroup Advisors. With millions in under management and a Raving Fan Guarantee, You Can’t Go Wrong!

==================================

Technorati Tags: 529 account, 529 college savings, 529 contribution limits, 529 fees, 529 funds, 529 investment choices, 529 investment options, 529 mutual funds, 529 Plan, 529 plans, 529 saving, 529 savings, Best 529, best 529 investments, College 529, College savings plan, college savings plan 529, education 529, LotusGroup Advisors