529 Education Savings Plan Calculator
Plan and calculate your 529 college savings with tax benefits and growth projections
529 Plan Parameters
Quick Examples:
529 Plan Growth Over Time
529 Plan Projection
Total Saved by College
$75999
Future College Cost (1 child)
$51399
Coverage
147.9%
Years to Save
13
Projected Surplus
$24601
Annual Tax Savings:
$900
Savings Composition
🎓 529 Plan Benefits
- •Tax-free growth and withdrawals for qualified education expenses
- •State tax deductions or credits in many states
- •High contribution limits (typically $300,000+ per beneficiary)
- •Flexible beneficiary changes within family
- •Can be used for K-12 tuition (up to $10,000/year)
Understanding 529 Education Savings Plans
What is a 529 Plan?
A 529 education savings plan is a tax-advantaged investment account designed to help families save for education expenses. Named after Section 529 of the Internal Revenue Code, these plans offer significant tax benefits when funds are used for qualified education expenses.
Types of 529 Plans
- • Education Savings Plans: Investment accounts with various portfolio options
- • Prepaid Tuition Plans: Lock in current tuition rates for future use
- • ABLE Accounts: Special 529s for individuals with disabilities
Qualified Education Expenses
Higher Education:
Tuition, fees, books, supplies, equipment, room & board (for at least half-time students)
K-12 Education:
Tuition only, up to $10,000 per year per beneficiary
Other Qualified Expenses:
Apprenticeship programs, student loan repayments (lifetime limit $10,000)
Frequently Asked Questions
What happens if my child doesn't go to college?
You can change the beneficiary to another family member, use funds for trade schools or apprenticeships, or withdraw the money (paying taxes and a 10% penalty on earnings). Starting in 2024, you can also roll unused 529 funds to a Roth IRA for the beneficiary under certain conditions.
How much should I contribute to a 529 plan?
Contribution amounts vary by family income and goals. Many financial advisors suggest saving for 25-50% of expected college costs through 529 plans, with the remainder coming from current income, student aid, and loans. Consider your state's tax deduction limits when determining contribution amounts.
Can I have multiple 529 accounts for one child?
Yes, you can have multiple 529 accounts for the same beneficiary, including accounts in different states. However, be mindful of overall contribution limits and potential gift tax implications. Some families use multiple accounts to take advantage of different investment options or state tax benefits.
About This Calculator
Calculate 529 college savings plan growth with monthly contributions, tax benefits, and investment returns. Plan how much to save for your child's education with 2025 contribution limits.
Frequently Asked Questions
What happens if my child doesn't go to college?
You can change the beneficiary to another family member, use funds for trade schools or apprenticeships, or withdraw the money (paying taxes and a 10% penalty on earnings). Starting in 2024, you can also roll unused 529 funds to a Roth IRA for the beneficiary under certain conditions.
How much should I contribute to a 529 plan?
Contribution amounts vary by family income and goals. Many financial advisors suggest saving for 25-50% of expected college costs through 529 plans, with the remainder coming from current income, student aid, and loans. Consider your state's tax deduction limits when determining contribution amounts.
Can I have multiple 529 accounts for one child?
Yes, you can have multiple 529 accounts for the same beneficiary, including accounts in different states. However, be mindful of overall contribution limits and potential gift tax implications. Some families use multiple accounts to take advantage of different investment options or state tax benefits.
How much should I contribute monthly to a 529 plan to cover four years of college in 18 years?
Based on 2025 data, the average annual cost of a public in-state four-year college is approximately $28,000 (tuition, room, and board), totaling $112,000 over four years. Factoring in a 5% annual education inflation rate, that same education will cost roughly $270,000 in 18 years. To reach that goal, assuming a 6% average annual investment return in your 529 plan, you would need to contribute approximately $780-820 per month starting today. If you already have $10,000 saved, the required monthly contribution drops to about $700. Starting at birth vs. age 5 cuts the monthly requirement by nearly 35%. In 2025, 529 plan contributions are not federally tax-deductible, but 37 states offer state income tax deductions or credits. Superfunding is also an option: you can front-load up to five years of gift tax exclusions ($95,000 per contributor in 2025) in a lump sum without triggering gift tax.
What happens to unused 529 funds, and what are the new rollover rules to a Roth IRA?
Thanks to SECURE 2.0 Act provisions effective in 2024 and continuing in 2025, unused 529 funds can now be rolled over into a Roth IRA for the beneficiary under specific conditions. The 529 account must have been open for at least 15 years, and contributions and earnings from the last five years are ineligible for rollover. The lifetime rollover limit is $35,000 per beneficiary, and annual rollovers are capped at the Roth IRA contribution limit ($7,000 in 2025, or $8,000 if age 50+). The beneficiary must have earned income at least equal to the rollover amount. Beyond the Roth rollover, you have other options: change the beneficiary to another family member, withdraw funds penalty-free up to the scholarship amount received, use funds for K-12 tuition (up to $10,000/year), apprenticeship programs, or student loan repayments (up to $10,000 lifetime per beneficiary). Non-qualified withdrawals incur income tax plus a 10% penalty only on the earnings portion.