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529 College Savings Plan Calculator

Project your 529 savings growth and plan for education costs.

Child's Details
Savings Plan
6-7% is typical for balanced portfolios
Tax Benefits

Savings Projection

Enter your details to see projected 529 savings and college cost coverage.

2024-25 Average Costs
  • Public In-State: $23,250/yr
  • Public Out-of-State: $41,180/yr
  • Private University: $56,190/yr
  • Community College: $12,540/yr
*Includes tuition, fees, room & board
529 Plan Benefits
1 Tax-Free Growth

Investment earnings grow without federal tax

2 Tax-Free Withdrawals

Qualified education expenses are tax-free

3 State Tax Deductions

Many states offer deductions on contributions

4 High Contribution Limits

No annual limit (lifetime $300K-$550K)

Related Tools
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529 Plan Resources:

Disclaimer
College costs increase ~5% annually. This calculator provides estimates only. 529 rules vary by state. Non-qualified withdrawals incur taxes plus 10% penalty on earnings. Consult a financial advisor for personalized advice.

What is a 529 College Savings Plan?

A 529 plan (also called a Qualified Tuition Program) is a tax-advantaged savings plan designed to help families save for future education expenses. Named after Section 529 of the Internal Revenue Code, these plans are sponsored by states, state agencies, or educational institutions.

529 plans offer significant tax benefits: contributions grow tax-free federally, and withdrawals for qualified education expenses are also tax-free. Many states offer additional tax benefits, such as deductions or credits for contributions to their state's plan.

These plans can be used for K-12 tuition (up to $10,000/year), college and university expenses, graduate school, vocational and trade schools, and even student loan repayment (up to $10,000 lifetime). Starting in 2024, unused 529 funds can be rolled into a Roth IRA for the beneficiary (subject to conditions).

Types of 529 Plans

529 Savings Plans

Most common type. Works like a 401(k) for education:

  • Contribute any amount up to lifetime limit
  • Choose from investment options (mutual funds)
  • Value fluctuates with market
  • Can use at any eligible school nationwide
  • No residency requirements
Prepaid Tuition Plans

Lock in today's rates. Prepay tuition at current prices:

  • Buy credits at today's tuition rates
  • Guaranteed to cover future tuition
  • Limited to specific state schools
  • Residency often required
  • Fewer plans available today

Qualified Education Expenses

Expense Type College/Grad School K-12 Schools
Tuition & Fees ✓ Unlimited ✓ Up to $10,000/year
Room & Board ✓ (enrolled half-time+) ✗
Books & Supplies ✓ Required items ✗
Computer & Internet ✓ For student use ✗
Special Needs Equipment ✓ ✗
Student Loans ✓ Up to $10,000 lifetime ✗
Apprenticeship Costs ✓ Registered programs ✗

State Tax Benefits for 529 Contributions

One of the biggest advantages of 529 plans is the state tax deduction or credit many states offer:

States with Unlimited Deductions
  • Colorado - Full deduction, any plan
  • New Mexico - Full deduction
  • South Carolina - Full deduction
  • Indiana - 20% credit up to $1,500
States with Good Benefits
  • Pennsylvania - $17,000 per beneficiary
  • Illinois - $10,000/$20,000 (single/MFJ)
  • New York - $5,000/$10,000 (single/MFJ)
  • Georgia - $8,000 per beneficiary
Pro Tip: Some states (like PA, AZ, KS, MO, MT) give deductions for contributions to ANY state's 529 plan, not just their own. Shop around for the best plan!

New: 529 to Roth IRA Rollover (2024+)

Starting in 2024, the SECURE 2.0 Act allows unused 529 funds to be rolled into a Roth IRA for the beneficiary:

Requirements:
  • 529 account must be 15+ years old
  • Contributions from last 5 years ineligible
  • Beneficiary must have earned income
  • Subject to annual Roth IRA limits
Limits:
  • $35,000 lifetime maximum rollover
  • Annual limit = Roth IRA contribution limit
  • Tax-free and penalty-free
  • Great solution for leftover 529 funds

Frequently Asked Questions

Yes! 529 savings plan funds can be used at any eligible educational institution, including colleges, universities, vocational schools, and even international schools. The school must participate in federal student aid programs. You're not limited to schools in the state where you opened the 529.

Great news! If your child receives a scholarship, you can withdraw up to the scholarship amount from the 529 without the 10% penalty. You'll still owe income tax on the earnings portion, but no penalty. Alternatively, you can change the beneficiary to another family member or save it for graduate school.

Yes! Anyone can contribute to a 529 plan—parents, grandparents, aunts, uncles, or friends. Contributions are considered gifts and qualify for the annual gift tax exclusion ($18,000 per person in 2024). There's also a "superfunding" option to contribute up to 5 years of gifts at once ($90,000) without triggering gift tax.

You have several options: (1) Change the beneficiary to a sibling, cousin, or even yourself, (2) Use it for vocational school or apprenticeships, (3) Roll up to $35,000 into a Roth IRA (if account is 15+ years old), (4) Withdraw funds (paying taxes + 10% penalty on earnings only). The contributions themselves can always be withdrawn tax and penalty-free.

Parent-owned 529 plans are reported as parental assets on the FAFSA and affect aid by at most 5.64% of the balance. Student-owned 529s are also now treated as parent assets (as of 2024 FAFSA). Grandparent-owned 529s no longer need to be reported on FAFSA starting 2024-25, making them more aid-friendly than ever.

First, check if your state offers a tax deduction (and if it's only for in-state plans). If your state has no tax benefit or allows any plan, shop for the best investment options and lowest fees. Top-rated plans include Utah's my529, Nevada's Vanguard 529, and New York's 529 Direct Plan. You can have accounts in multiple states.
Important Disclaimer

This calculator provides estimates for educational purposes only. College costs are projected using historical inflation rates (~5%) and may vary. 529 plan rules, state tax benefits, and contribution limits vary by state and may change. Investment returns are not guaranteed. Consult a qualified financial advisor and your state's 529 plan disclosure documents for personalized advice.