December 31, 2007
529 Plans Information
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Most states put a cap on lifetime contributions to 529 college savings plans that range between $100,000 and $275,000, though most don t have a limit on how much you can invest annually. Problem is, contributions of over $12,000 per year ($24,000 if you re married) are subject to a gift tax. There s a loophole here, however. You can invest up to $60,000 in one year to a 529 and it will be treated as five yearly payments of $12,000. But beware; going this route will leave you unable to make another deposit for the next five years.
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