How Much Can I Invest In A 529 College Savings Program

A 529 plan is a state sponsored college savings plan that offers tax-advantages. They are named after section 529 of the Internal Revenue Code. There are two different types of 529 types available and each state sponsors at least one of the two plans. The two types of plans are college savings plans and pre-paid tuition plans.

Pre-paid tuition plans allow the person saving for college to purchase credits at participating schools for tuition costs that have not yet incurred. College savings plan allow the saver to create an account on behalf of the beneficiary to pay for all of their future college expenses. 

College savings plans allow the account holder to choose from various investment options for their contributions. These may include money market funds, stock mutual funds, and bond mutual funds. Many people often wonder how much can I invest in a 529 college savings program? The amounts that may be contributed are substantial and in many state plans the amounts are about $200,000 per beneficiary.