Many people do not even know they can do this with their payroll check. Just like you have your 401(k) and other deductions taken from your check every pay period you can also have your 529 contribution sent to your plan. All you need to do is fill out a form and give it to your human resources department or payroll office.
The deduction you set up continues until the employees cancels it. If a $25 contribution is set up from biweekly paychecks when a child turns 2, he or she could accumulate $10,400—not counting any earnings by his or her 18th birthday. The hardest thing about contributing to a 529 plan is doing it on a regular basis. Some people are very good and organized about making that monthly contribution but many people end up forgetting. By making it automatic you have one less thing to think about in your busy life.
If someday you need to cancel the deduction to a 529 plan then all you need to do is contact your payroll office or human resources department and tell them you want the deduction cancelled. But be prepared it could take one or two pay periods for the order to take place.
A payroll deduction is the most painless way to save money toward a 529 plan. After a while you won't even notice the money being withdrawn.