2025 Limit for Contributions to 529 Education Savings Plan

In 2025, individuals can take advantage of U.S. education savings plans known as 529 plans. These state-sponsored accounts offer tax-advantaged savings for college, trade, vocational courses, and qualified K-12 expenses. Contributions to a 529 plan have no yearly contribution limits, but all states and the District of Columbia have maximum aggregate contribution limits for each 529 account.

For an individual, the maximum contribution limit in 2025 is $95,000, which can be achieved by superfunding the account—contributing up to five years' worth of contributions at once. For a married couple filing jointly, the maximum contribution limit is $190,000, achieved by superfunding two 529 plans.

However, it's important to note that there is no publicly available information about the countries with the highest contribution limits for 529 plans in 2025. Details on contribution limits by country were not found in the provided documents.

The IRS considers 529 contributions as gifts. If contributions exceed $19,000 for an individual or $38,000 for a married couple in a year, gift tax consequences may arise. As of September 2025, you can gift up to $19,000 in a single 529 plan without the funds counting against the lifetime gift tax exemption amount.

The highest contribution limit in 2025 is found in New Hampshire at $621,411. On the other hand, Georgia and Mississippi have the lowest contribution limits at $235,000 per beneficiary. Hawaii has the lowest maximum contribution limit at $350,000, while New Hampshire has the highest.

529 plans allow federal tax-free withdrawal of earnings and may offer tax deductions. They can be a smart way to fund education due to rising tuition costs and concerns about student loan debt. In addition, a 529 plan can also serve as a valuable estate planning and retirement savings tool.

It's worth mentioning that the SECURE 2.0 Act includes a rule that allows beneficiaries to avoid both taxes and the usual 10% penalty for non-qualified withdrawals from a Roth IRA, provided the account holder transfers up to a lifetime limit of $35,000 to a Roth IRA for a beneficiary.

As for the gift tax exclusion, in 2025, it is $19,000 for individuals and $38,000 for married couples giving jointly. Exceeding these limits may require filing a gift tax return. Lifetime gift tax exemptions in 2025 are $13.99 million for individuals and $27.98 million for couples. Exceeding these limits can result in a flat gift tax of 40%.

The average published tuition and fees for full-time undergraduate students are: Public four-year in-state: $11,610, Public four-year out-of-state: $30,780, Public two-year in-district: $4,050, Private nonprofit four-year: $43,350. The average 2025 four-year in-state college tuition and fees range from $17,360 in New Hampshire to $6,360 in Florida.

Each state offers a 529 plan, providing families with an opportunity to save for their child's education. The Roth IRA rule, included in the SECURE 2.0 Act, will help beneficiaries avoid both taxes and the usual 10% penalty for non-qualified withdrawals.

In conclusion, 529 plans offer a flexible and tax-advantaged way to save for education expenses. However, it's crucial to understand the contribution limits, gift tax implications, and potential estate planning benefits when considering a 529 plan.