There is a high maximum amount allowed in 529 accounts.
The maximum allowed per beneficiary amount–all accounts for a person added together–varies by state plan and adjusts as legislatures see fit (see Appendix 1 for a link to each state program description). North Dakota’s maximum has been $269,000 since 2022–currently the lowest in the nation. Georgia has raised its maximum from $235,000 to $550,000. Utah allows $606,000, New Hampshire $621,411, and Virginia $675,000–currently the highest. This maximum amount estimates the current costs for an undergraduate and graduate degree at the highest-cost public or private educational institution in the United States. Contributions that exceed the limit are returned to the contributor, though balances can continue to grow through earnings beyond these maximum amounts.
In the unusual situation a wealthy account owner wants to superfund an account over $95,000 in a single year ($190,000 if filing jointly), a Unified lifetime gift tax carve out may additionally be performed. See Estate Planning chapters.
A wealthy couple is nearing the estate tax limits of $15 million per person. Amounts over this will be taxed at 40% federal rate.
The couple can superfund 529 accounts for 10 children and grandchildren, gifting 5 years of maximum $19,000 per year each (total $190,000 per beneficiary per couple) in 1 day! Doing this loses those large amounts from their estate–total 1.9 million in 1 day with the 10 accounts– while they remain account owners, controlling all investments and withdrawals.
No statement or example on this site should be considered a specific recommendation for your personal situation. Investing and tax strategies each carry significant risks. Examples herein may not apply to your situation. Please consult your estate attorney, tax advisor, or financial advisor for personal advice.