529 Contribution Limits
You may contribute to your college savings account at any time. All you need is $25 to open a Learning Quest account. There are several convenient ways to contribute to your savings.
Learning Quest has a high contribution limit of $380,000 per beneficiary. This is based on the average expenses of five years of higher education at a private institution.
Make a contribution to a Learning Quest college savings account through:
You can set up an automatic, or recurring, contribution from your paycheck, savings account, checking account, military allotment or Social Security payment.
Consistent contributions (e.g., monthly or bi-weekly) make a significant difference over time. Putting your contributions on a regular, fixed-dollar schedule allows you to have a solid plan — you're not hassling with getting it done every month or, worse yet, not doing it at all because the money was spent somewhere else.
Recurring contributions are convenient and efficient, help you take advantage of market trends, and are key to helping your college savings compound long-term.
You may contribute to your account at any time. All you need is $25 to open a Learning Quest account. You may have certain instances, such as receiving a tax refund, an inheritance or a work bonus, where a lump-sum contribution makes sense to maximize your investment.
Other ways to contribute:
Ugift® — A free service from Learning Quest that lets family and friends give the gift of college savings.
- Account owners — Share the Ugift® code and others can easily contribute to your college savings account whenever they want. Their contributions are specifically coded to your Learning Quest account, so you don't have any paperwork or anything extra to do.
- Gift givers —Make gift contributions online through electronic bank transfer or by check. Simply enter the Ugift® code. You don't have to join, register or pay a fee.
Upromise® — A free rewards program that deposits a percentage of your spending to a Upromise® account that can easily be synced to your Learning Quest account. Essentially, you're earning cash-back on your purchases and applying the funds to save for college.
Reduce your personal taxable estate through "accelerated gifting". This allows you to make up to five years' worth of gifts ($70,000 if single/$140,000 if married, filing jointly) to a Learning Quest account in a single year without being subject to gift taxes. This benefit is unique to 529 college savings plans like Learning Quest. Generally, your contributions to the account are removed from your taxable estate.1
NOTE: The gift tax exclusion amount is adjusted annually. To qualify, you'll need to file IRS Form 709 (Instructions for Form 709) to treat the gift as if it were made in equal payments over five years. To avoid gift tax, you should make no additional gifts to the beneficiary during that time. If a new beneficiary is named who is two or more generations younger than the current beneficiary, a generation-skipping tax may apply. You should consult a tax advisor to determine if you need to file this form.
1 In the event you do not survive the five-year period, a pro-rated amount will revert back to your taxable estate.
IRS Circular 230 Disclosure: American Century Companies, Inc. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with American Century Companies, Inc. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.
The availability of tax or other benefits may be conditioned on meeting certain requirements, such as residency, purpose for or timing of distributions, or other factors.
This information is for educational purposes only and is not intended as tax advice. Please consult your tax advisor for more detailed information or for advice regarding your individual situation.
No additional gifts can be made to that beneficiary over the next four years after the year in which the one-time gift is made.
If the donor of an accelerated gift dies within the five-year period, a portion of the transferred amount will be included in the donor's estate for estate tax purposes. Consult with a tax advisor regarding your specific situation.