A 529 plan is one of the smartest investments that can be made for someone’s future. Even so, there are some uncertainties if you’re unfamiliar with how 529 plans work. Who can contribute to a 529 plan? Is it open to anyone? How can you contribute to it? Are there limits to contributions? What about tax advantages? We’re here to set the record straight.
Who Can Contribute?
There is no real limit as to who can contribute to a 529 plan.
For parents with very small children, thinking about dropping them off at college for their freshman year may seem very far away. Thinking about saving money for college may seem even farther in the distance. Yet, young parents today know first-hand how expensive college has become — because they’re probably still paying off student loans from their own educations!
While you may not think you have the money to start a college savings plan right now,