529 college savings plan Benefits
Income Eligability:
- Did you know that with an ESA, you aren't eligible to contribute if you make more than $110,000 per year ($220,000 for married couples)? Unlike ESAs, your income does not affect your eligibility to open a 529 account.
- Contributions to 529 plans also qualify for the $11,000 ($22,000 for married couples in 2002) annual gift tax exclusion.
- You can also contribute up to five years of gifts during the first year, meaning you can put in up to $55,000 ($110,000 for married couples). This is a great benefit in situations where inheritance money enters the picture.
- Your account can grow up to $268,000 in some states.
- You can contribute as little as $25 to $50 per month.
Additional 529 College Savings Plan Information