Plan Contribution Limits:
The Alabama Higher Education 529 Fund can be opened with a minimum initial deposit of $1,000 or with a minimum of $25 per month into their automatic investment plan.The plan has one of the higher “lifetime" contribution limits at $300,000 per beneficiary. While this is an attractive feature for the wealthiest of investors, it doesn’t offer much benefit to most parents.
As with all Section 529 plans, parents and other donors need to be aware of the Federal gift and estate tax consequences of giving more than $12,000 per donor, to any one beneficiary within one calendar year.
The Higher Education 529 Fund can also be used by corporations, non-profit agencies, and trusts to create accounts similar to a “scholarship fund.”
Plan Partnerships:
The Alabama Higher Education Section 529 Fund has a formal partnership with BabyMint.com. Through BabyMint, a portion of each purchase (1-30%) made at participating retailers is deposited into your Section 529 account. Additionally, gift certificates purchased from a number of retailers earn a 5% contribution.You can also earn a 1% reward on all your purchases with the BabyMint credit card. As always, be careful when using rewards credit cards, as the interest on an unpaid balance can quickly overshadow the rewards.
