Contributors
Contributors are the people who open and maintain control over a 529 account. A contributor can be any adult (must be 18 or older) at any income level. The account is opened with the contributor’s Social Security number and street address. The contributor is the account owner and maintains control over the account until the money is used.
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 $15,000 annually without having to pay a gift tax ($30,000 for married people filing jointly). The good news is that if a contributor gives between $15,000 and $75,000 at one time ($150,000 if married filing jointly), the IRS allows the lump sum gift to be spread over a five-year period ($15,000 for each year, or $30,000 if married filing jointly). Remember, however, that the contributor would not be able to give any more without triggering the annual gift tax.
In many states, contributions to a 529 plan can be deducted from state taxes. S