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You can either write a check, arrange for an electronic transfer from your bank account, or enroll in automatic monthly contributions through payroll or your bank. Most 529 plans have very low minimum contribution requirements, so if you don’t have a lot to set aside for college, start with just a little. Keep the gift-tax rules in mind, including the $13,000 ($14,000 in 2013) annual gift-tax exclusion and the special five-year election for large 529 contributions, since your contributions to a 529 plan under some circumstances will require the filing of a gift-tax return.
Posted: 2012-12-07
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