Federal tax law does not set a specific dollar limit on the maximum amount that can be invested in an account.  The § 529 legislation requires that there be “safeguards to prevent contributions… in excess of those necessary to provide for the qualified higher education expenses of the beneficiary.”  A maximum contribution amount is established by each state in order to comply with the federal legislation.  The formula used is unique to each state.  An example of one state’s definition is: 

“…the lesser of:

a)      7 times the average one-years' undergraduate tuition, fees, room-and-board at the ten independent four-year eligible education institutions as measured and last published by the College Board Independent 500 College Index that have the largest total direct charges.

b)      The cost in current dollars of qualifying higher education expenses the account holder reasonably anticipates the beneficiary to incur.”