Question: How often can I make contributions to my child's 529 account?
Answer :
It depends on the rules of your 529 plan. Many plans will allow you to contribute as often as you like. This gives you flexibility to tailor the frequency of your contributions to your own needs and budget, as well as to "dollar cost average" your contributions. Remember that 529 plans stop accepting contributions when the value of the accounts for any one beneficiary reaches a maximum limit. The limit is typically the amount needed to fund five years of tuition, fees, and room and board at the highest-cost institution allowed under the plan. In addition, some plans impose a maximum limit on annual contributions.

Some plans may also have contribution minimums. This could mean one or more of the following: (1) you have to make a minimum deposit to open an account, (2) each of your contributions has to be at least a certain amount, or (3) you have to contribute at least a certain amount per year (annual minimum). However, some plans may waive (or lower) some of these minimum requirements if your contributions will be made through payroll deduction or automatic debits from your bank account. Many plans also waive or lower these minimums for residents.

Consult the plan administrator of any 529 plan you are considering for details regarding contribution minimums, maximums, and other restrictions imposed by the plan.

Note: Investors should consider the investment objectives, risks, charges, and expenses associated with 529 plans before investing. More information about 529 plans is available in each issuer's official statement, which should be read carefully before investing. Also, before investing, consider whether your state offers a 529 plan that provides residents with favorable state tax benefits.