Setting Up a Plan

Start funding your savings plan

There are no annual contribution limits on 529 plans; however, federal law allows only a certain amount of money to be contributed each year before you’ll face gift tax consequences. Talk to a tax advisor or visit the Internal Revenue Service (IRS) to learn about gift taxes.

Most 529 plans have a lifetime cap that’s equal to what that particular state believes to be the cost of getting an undergraduate and graduate education at an expensive school. This cap varies from state to state, so check with your plan administrator for details.

How to contribute to your plan

There are several ways to add money to a 529 plan. Methods may vary depending on the plan you choose, so check with your plan administrator. Some of the most common methods include:

  • Setting up a direct deposit from your paycheck
  • Making an electronic funds transfer (EFT) from your bank to your plan
  • Sending or depositing a check
  • Contributing from a Upromise account

We make it easy for IU employees

If you’re an IU employee, you can use direct deposit to send part of your paycheck to your 529 savings plan. Use the Employee Center in One.IU to set up or adjust your direct deposit preferences.

Set up direct deposit
Need help?

The IU Office of the University Controller has information about using direct deposit to fund a 529 plan.

Visit the University Controller Site

Have questions?

Contact us