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Can anyone contribute to a 529 college savings plan?

Last Updated: March 26, 2008

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Yes. Anyone can contribute to a 529 education plan. There are no income limitations, nor are there limits by age. In addition, many state 529 plans have contribution limits that exceed $200,000.

Of course, 529 plans are primarily a college savings tool, so you'll need to have a beneficiary (e.g., child or grandchild) who will have undergraduate or graduate school expenses. Withdrawals for purposes other than qualified education expenses are subject to ordinary income taxes and a 10% penalty tax on earnings.

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