529 Plan Contribution Deadline Approaches

State tax deadlines for 529 college savings contributions vary, but year-end is the cutoff for most states offering deductions.

State Tax Benefits

Over 30 states offer tax deductions or credits for 529 contributions. Limits range from $2,000 to unlimited depending on your state. Check your state’s specific deadline and contribution limits before December 31.

Quick Tips

Gift contributions count toward the $18,000 annual gift tax exclusion. Grandparents can contribute to grandchildren’s accounts without estate or gift tax implications. Consider superfunding up to five years of contributions at once using the 5-year election.

Unused 529 funds can now roll over to Roth IRAs under new rules—another reason to contribute even if college plans are uncertain.