Calculate 529 plan savings growth, estimate college costs, and see tax benefits. Includes year-by-year projections and 529 vs. taxable account comparison.
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Planning for college costs can feel overwhelming—tuition has risen over 1,200% since 1980. Our 529 calculator projects how your savings will grow, estimates future college costs with inflation, and shows how much you need to save monthly. Compare 529 tax advantages against taxable accounts and see year-by-year projections to stay on track.
A 529 plan is a tax-advantaged investment account designed for education expenses. Contributions grow tax-free, and withdrawals for qualified education expenses (tuition, room and board, books, computers) are completely tax-free at the federal level. Over 30 states also offer state income tax deductions or credits for 529 contributions. Unlike other investment accounts, a 529 plan can save families thousands in taxes over the life of the plan.
Future Value Formula
FV = PV(1+r)^n + PMT × [(1+r)^n - 1] / rCollege costs rise 3-5% annually. See what tuition will actually cost when your child enrolls, not what it costs today.
Compare 529 tax-free growth against a taxable brokerage account. The tax advantage can mean tens of thousands more for education.
Calculate the exact monthly contribution needed to reach 100% coverage, so you can set up automatic transfers with confidence.
Year-by-year projections show whether you're on track, behind, or ahead—helping you adjust contributions before it's too late.
See how costs differ between in-state public, out-of-state, private, and community college to make informed decisions.
Start early with a newborn to maximize compound growth. Even $200/month from birth can grow to over $85,000 by age 18.
If you started late, calculate how much you need to contribute monthly to close the gap before enrollment.
Grandparents can contribute up to $18,000/year ($36,000 married) per beneficiary without gift tax, or superfund 5 years at once.
Run separate scenarios for each child to create a comprehensive family college savings strategy.
Compare in-state public vs. private university costs to guide your child's college search and savings target.
A general benchmark is to have roughly one year of projected tuition saved by age 7. For in-state public college (currently ~$24,000/year), that means about $30,000-$35,000 in the account (accounting for future inflation). If you've been contributing $300/month since birth at 7% returns, you'd have approximately $33,000—right on target.
The main downside is the 10% penalty plus income tax on earnings if funds aren't used for qualified education expenses. However, the SECURE 2.0 Act now allows rolling up to $35,000 of unused 529 funds into a Roth IRA (after 15 years), significantly reducing this risk. Other considerations include limited investment options and potential impact on financial aid.
At a 7% average return, a $10,000 initial deposit grows to about $33,800 in 18 years. Adding $300/month grows the total to approximately $139,000. At 6% return, the same scenario yields about $124,000. The key factor is starting early—the last few years of compound growth contribute disproportionately to the total.
The 15-year rule, introduced by the SECURE 2.0 Act (effective 2024), allows unused 529 funds to be rolled over into a Roth IRA for the beneficiary, but only if the 529 account has been open for at least 15 years. Annual rollovers are limited to the Roth IRA contribution limit ($7,000 in 2025), with a lifetime maximum of $35,000. This rule provides an excellent exit strategy if college funds aren't fully needed.
529 plans don't have annual contribution limits, but contributions are treated as gifts. In 2025, you can contribute up to $18,000 per beneficiary ($36,000 if married filing jointly) without triggering gift tax reporting. The 529 superfunding provision lets you front-load up to 5 years of gifts ($90,000 single, $180,000 married) in one year. Lifetime maximums vary by state, typically $235,000 to $550,000.
529 contributions are not deductible on federal taxes. However, over 30 states offer state income tax deductions or credits. For example, New York allows up to $5,000 ($10,000 married) in deductions, while some states like Indiana and Utah offer direct tax credits. Check your state's specific 529 tax benefits—at a 5% state tax rate, a $5,000 deduction saves $250/year.
You have several options: (1) Change the beneficiary to another family member (sibling, cousin, even yourself), (2) Roll up to $35,000 into a Roth IRA after 15 years (SECURE 2.0 Act), (3) Use funds for trade schools, apprenticeships, or K-12 tuition (up to $10,000/year), (4) Pay student loans up to $10,000, or (5) Withdraw with the 10% penalty on earnings only (contributions come out tax-free).
Yes, since the Tax Cuts and Jobs Act of 2017, you can use up to $10,000 per year per beneficiary from a 529 plan for K-12 tuition at public, private, or religious schools. Note that some states don't conform to this federal provision and may recapture state tax deductions. Room and board, books, and supplies for K-12 are not qualified expenses.
A common guideline is to cover about one-third of projected costs (assuming grants, scholarships, and income cover the rest). For in-state public college (projected ~$120,000 for 4 years), saving $250-$350/month from birth at 7% returns targets about $80,000-$110,000. Use our calculator to find your exact number based on your child's age and college goals.
Yes, starting in 2024 under the SECURE 2.0 Act. Requirements: the 529 must be open 15+ years, rollovers are subject to annual Roth IRA contribution limits ($7,000 in 2025), the lifetime maximum is $35,000, and the beneficiary must have earned income. This is a game-changer for overfunded 529 plans, effectively creating a tax-free retirement savings bonus.