How much can a parent contribute to a 529 per year?
In either case, parents receive the same treatment as any other person making a contribution: each parent can give up to $15,000 annually to their child's 529 plan without having to file a gift tax return, for a total of $30,000 per year.
What happens to money in 529 if not used?
If you truly have no other use for your leftover 529 plan savings, you can always take a non-qualified distribution. Your contributions will never be taxed or penalized, since they were made with after-tax dollars. Any earnings on your investments, however, will be subject to income tax as well as a 10% penalty.
What are the pros and cons of a 529 savings account?
Pros and Cons of 529 Plans
| Advantages |
Disadvantages |
| Low maintenance |
Limitations on state tax benefits |
| High contribution limits |
No self-directed investments |
| Flexibility |
Fees |
| Favorable financial aid treatment |
Ownership rules |
Is Bright Start 529 a good plan?
Bright Start Highly Rated!
Morningstar annually rates 529 college savings programs. Bright Start has been rated as one of the top 529 plans in the nation. Since 2017, Bright Start has earned a Gold medal from Morningstar – the highest consumer rating given to college savings programs.