Contributors
Contributors are the people who open and maintain control over a 529 account. There are no restrictions on who can be a contributor. The contributor can be any adult at any income level.
Contributions to a 529 plan may only be made in cash and are treated as part of the annual gift tax exclusion. Thus, the contributor can give up to $14,000 annually without having to pay a gift tax. The good news is that if a contributor gives between $14,000 and $70,000 at one time, the IRS allows the lump sum gift to be spread over a five-year period ($14,000 for each year). In many states, contributions to a 529 plan can be deducted from state taxes. States are required to set contributio