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College Savings

529 Plan Savings Calculator

Project exactly how much your 529 will grow — with state tax deductions, year-by-year returns, superfunding scenarios, and the Secure Act 2.0 rollover to Roth.

Updated for FAFSA Simplification 2024 rules
Secure Act 2.0 529-to-Roth rollover modeled
State tax deduction data for all 50 states + DC

Basic Info

Age 0–17

Usually 18

$300

Tax refund, bonus, gift

Projected cost: $161,010 total (13 yrs at 3% inflation)

Increase contributions by this % each year (e.g. 3% with salary growth)

Used to value your state deduction

Your Results

Projected balance at age 18

$82,719

in 13 years

Funding coverage

51%

of $161,010 target

Required monthly to hit 100%

$626

vs current $300

Total state tax savings

$3,206

New York deduction

Coverage of projected college cost$82,719 / $161,010
$8,999

529 tax advantage vs taxable brokerage

Same contributions in a taxable account would grow to only $73,719, paying ~15% capital gains on gains along the way.

New York 529 Tax Benefit

Annual deduction: $5,000 single / $10,000 joint

At 6.9% state rate: saves $247/year

In-state plan required: NY 529 Direct Plan

Excess contributions can be carried forward

Visit NY 529 Direct Plan →

Savings Milestones

Year 5

$25k

Year 8

25% of goal

Year 9

$50k

Year 13

50% of goal

Year-by-year projection

Starting balance$5,000
Year 1(+$516 gains)$9,116
Year 2(+$1,279 gains)$13,479
Year 3(+$2,304 gains)$18,104
Year 4(+$3,606 gains)$23,006
Year 5(+$5,202 gains)$28,202
Year 13(+$30,919 gains)$82,719

How to use this calculator

  1. Enter your child's age

    Set your child's current age and the age you expect them to start college (default: 18). The calculator computes how many years you have to save.

  2. Add your 529 balance and contributions

    Enter your current 529 balance, monthly contribution, and any annual lump-sum additions (tax refunds, bonuses, gifts).

  3. Select your state for tax deductions

    Choose your state of residence. The calculator looks up your state's 529 deduction or credit and projects your total tax savings over the savings period.

  4. Review the growth projection

    See your projected balance at college start, coverage percentage, year-by-year chart, and the required monthly contribution to hit your goal.

  5. Explore advanced scenarios

    Toggle on superfunding, grandparent contributions, multi-child planning, or the new Secure Act 2.0 529-to-Roth rollover in the Advanced section.

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Understanding your results

What is a 529 plan?

A 529 plan is a tax-advantaged savings account for education expenses — named after Section 529 of the Internal Revenue Code. There are two types: education savings plans (market-based investments, the subject of this calculator) and prepaid tuition plans(lock in today's tuition rates at participating schools).

Anyone can open one — parents, grandparents, or even the student. Contributions are made with after-tax dollars; the investment grows tax-deferred, and qualified withdrawals are completely tax-free federally. The account owner keeps full control and can change the beneficiary to another family member at any time.

0%

Federal tax on earnings

When withdrawn for qualified education expenses

$18,000

Annual gift limit (2024)

Per beneficiary — no gift-tax filing required

$575,000

Max account value

Highest state aggregate limit (New Hampshire)

Federal tax advantages

The core federal benefit is tax-free growth and qualified withdrawals. Unlike a taxable brokerage account, a 529 does not generate annual taxable events on dividends or capital gains while invested. When withdrawn for qualified education expenses, no federal income tax applies to the earnings — ever.

Annual gift tax exclusion: You can contribute up to $18,000 per year per beneficiary (2024 limit) without triggering gift tax reporting. Married couples can combine: $36,000/year per beneficiary. There is no federal aggregate contribution limit — each state sets its own cap (typically $235,000–$575,000). The $18,000 is a gift tax concept, not a hard cap on contributions.

Superfunding: up to $180,000 in one year

Under IRC §529(c)(2)(B), you can contribute 5 years' worth of annual exclusion gifts at once — $90,000 single or $180,000 married — and elect to spread them over 5 years for gift tax purposes via IRS Form 709. This front-loads compound growth from day one. Note: no additional exclusion gifts to the same beneficiary are allowed during the 5-year election window.

State tax deductions: the complete picture

Approximately 37 states plus DC offer a state income tax deduction or credit for 529 contributions. The value varies widely — from a modest $250 credit to an unlimited deduction — and whether you must use your own state's plan also varies.

StateTypeSingle / JointAny state?
ColoradoDeductionUnlimitedIn-state only
New MexicoDeductionUnlimitedIn-state only
South CarolinaDeductionUnlimitedIn-state only
West VirginiaDeductionUnlimitedIn-state only
PennsylvaniaDeduction$17,000 / $34,000Any state
MissouriDeduction$8,000 / $16,000Any state
IllinoisDeduction$10,000 / $20,000In-state only
New YorkDeduction$5,000 / $10,000In-state only
VirginiaDeduction$4,000/beneficiaryIn-state only
IndianaCredit20%, max $1,500Any state
UtahCredit5%, max $105 / $210Any state
No income tax: AK, FL, NV, NH, SD, TN, TX, WA, WY — no state benefit, but also no state taxes on anything.
Income tax, no 529 deduction: CA, DE, HI, KY, NC — residents may benefit from any-state plans with lower fees.

Data current as of January 2025. Limits are per account owner per year unless noted “per beneficiary.” Verify with your state plan before filing.

In-state vs any-state:About half of states require you to use their own plan to claim the deduction. If your state offers an “any-state” deduction (Pennsylvania, Missouri, Arizona, Kansas, and others), you can choose the best-performing, lowest-fee plan nationally while still claiming your home state's deduction.

Qualified vs non-qualified expenses

Qualified — tax-free withdrawals

Tuition and fees at eligible institutions

Books, supplies, and required equipment

Room and board (half-time enrollment; school's COA cap)

Computers, internet, educational software

K-12 tuition up to $10,000/year/beneficiary

Registered apprenticeship expenses

Student loan repayment up to $10,000 lifetime

Special needs services for qualifying beneficiaries

Non-qualified — 10% penalty + tax

Transportation to/from school

Health insurance or medical expenses

Room and board exceeding school's COA

Student loan repayment above $10,000 lifetime

Clothing, personal care, entertainment

Off-campus housing exceeding school's budget

Source: IRS Publication 970 (2024), as modified by the SECURE Act of 2019 and SECURE 2.0 Act of 2022.

Non-qualified withdrawal penalties

If you withdraw 529 funds for non-educational purposes, two costs apply to the earnings portion only — contributions are always returned tax-free since you contributed after-tax dollars:

  1. 10% federal penalty on the earnings portion of the withdrawal
  2. Ordinary income tax on the earnings portion, at the recipient's rate

Example: $50k non-qualified withdrawal at 22% federal bracket

Account: $50,000 total — $30,000 contributions + $20,000 earnings. Non-qualified withdrawal costs: $2,000 federal penalty (10% on earnings) + $4,400 income tax (22% on earnings) = $6,400 total cost, or 12.8% of the withdrawal. At a 32% bracket that rises to $8,400.

Penalty exceptions (penalty waived; income tax still applies to earnings): scholarship received; beneficiary dies or becomes disabled; beneficiary attends a US military service academy; employer-provided educational assistance; rollover to Roth IRA under SECURE 2.0 (subject to conditions).

Secure Act 2.0: the 529-to-Roth rollover (2024)

Beginning January 1, 2024, SECURE 2.0 Act Section 126 allows unused 529 funds to roll over to a Roth IRA for the 529 beneficiary. This is the most significant change to 529 rules in decades and eliminates the main objection parents have to over-funding a 529.

Key rollover conditions

  • Account must be open for at least 15 years
  • Contributions from the last 5 years are ineligible for rollover
  • Roth IRA must be in the beneficiary's name (not the account owner's)
  • Annual rollover limit: $7,000 (2024 Roth IRA contribution limit)
  • $35,000 lifetime maximum per beneficiary regardless of account size
  • Beneficiary must have earned income at least equal to the rollover amount that year

Strategic implication:Open a 529 for a newborn today and the 15-year clock starts immediately. If the child doesn't need the full balance for college, excess funds can become a Roth IRA head start — up to $35,000 of tax-free retirement savings. This provision makes over-saving in a 529 essentially penalty-free for families who plan ahead.

FAFSA implications: who should own the 529?

Ownership structure matters enormously for financial aid. Under FAFSA Simplification rules (effective 2024-25 aid year), the owner of the account determines how much it hurts your aid eligibility.

Parent-owned

5.64%

of account value in SAI

Recommended

Best for most families. You keep full control, deduction benefits apply, and beneficiary changes are straightforward.

Grandparent-owned

0%

FAFSA impact (post-2024)

Now excellent

Distributions no longer appear on FAFSA at all. Note: ≈250 CSS Profile schools may still count grandparent distributions.

Student-owned

20%

of account value in SAI

Avoid

The student asset rate (20%) is 3.5× more punitive than the parent rate. Generally not recommended.

Source: US Department of Education FAFSA Simplification Act guidance, effective 2024–25 aid year.

529 vs alternatives: which vehicle is right?

VehicleTax treatmentContribution limitFAFSAFlexibility
529 PlanAfter-tax in; tax-free growth + qualified withdrawals; state deduction in most statesNo annual limit ($18k gift exclusion)5.64% (parent)Education + 529-to-Roth
Coverdell ESAAfter-tax in; tax-free growth + qualified withdrawals$2,000/yr/beneficiary5.64% (parent)Broader K-12 expenses than 529
UTMA/UGMATaxable; gains at child's rate (Kiddie Tax rules)No limit20% (student)Full flexibility; irrevocable gift
Taxable BrokerageAfter-tax in; LTCG + dividends taxed annuallyNo limit5.64% (parent)Full flexibility; any purpose
Roth IRA (dual-use)After-tax in; contributions always withdrawable; earnings tax-free at 59½$7,000/yr; income limits applyNot reported (major advantage)Excellent — retirement or education

For most families, the optimal strategy combines a 529 for education savings (tax-free growth + state deductions) and a Roth IRA for retirement with college as a secondary option.

Multi-child planning strategies

When saving for multiple children, two approaches exist — each with a different trade-off between control and simplicity:

Separate accounts per child

Each account maintains its own asset allocation aligned with that child's timeline. Virginia and Ohio offer per-beneficiary deduction limits ($4k each) — separate accounts let you claim both deductions simultaneously.

Single account with beneficiary flexibility

One account, changed as needed. Reduces admin overhead but makes it harder to maintain age-appropriate risk profiles for children at different stages.

With multiple children, front-load contributions for younger children (more years of growth ahead) while maintaining adequate contributions for older children approaching college.

The superfunding strategy

Superfunding is the strategy of making a 5-year forward gift in a single year — contributing up to $90,000 (single) or $180,000 (married filing jointly) at once, then electing to spread it over 5 years for gift tax purposes via IRS Form 709.

Key restriction: During the 5-year election period, you cannot make additional annual-exclusion gifts to the same beneficiary. If the contributor dies during the period, the prorated unfulfilled portion is included back in their estate.

$90,000

Single filer limit

5 × $18,000 annual gift exclusion in one year

$180,000

Joint filers

5 × $36,000 combined exclusion, one IRS Form 709

~$27,000

Extra growth advantage

vs spreading same $90k over 5 years at 6%, 18-year horizon

When a 529 might not be the right choice

Very uncertain college plans

If your child is unlikely to attend a qualifying institution, the SECURE 2.0 rollover ($35k lifetime max) limits the exit. A Roth IRA or taxable account may offer more flexibility — though for most families, the tax advantage outweighs this concern.

High-need families in states without deductions

California, Hawaii, Delaware, Kentucky, and North Carolina offer no state deduction. High-need families who qualify for significant grants may benefit more from prioritizing Roth IRA contributions (invisible to FAFSA) over 529 contributions (counted at 5.64%).

Special needs beneficiaries

Consider ABLE accounts (529A), which are asset-invisible to many public benefit programs and may be a better fit for children with disabilities.

Very short time horizons

If college is 1–2 years away, a 529's investment risk may not be appropriate. A high-yield savings account or short-term bond fund may be safer for funds needed imminently.

Why parents use this calculator

The 529 decision comes down to three questions no search result answers in one place: how much to save, whether your state's plan deserves your business, and what happens to the money if it isn't fully used for college.

~$47,000

Typical tax advantage

A NY family contributing $10k/year for 13 years at 8% earns roughly $47,000 more in a 529 than in a taxable brokerage — state deductions plus federal tax-free growth combined.

$35,000

SECURE 2.0 exit ramp

Even if your child skips college entirely, SECURE 2.0 allows up to $35,000 of unused 529 funds to roll into a Roth IRA for the beneficiary — penalty-free, with no income tax on the rollover.

0%

FAFSA impact (grandparent-owned)

Under 2024+ FAFSA Simplification, grandparent-owned 529 distributions no longer appear on the FAFSA at all — removing the last major objection to grandparent 529 gifting.

Real-world examples

1

Early starter: $200/month from birth

Parents open a 529 for a newborn with $0 starting balance and contribute $200/month consistently at a moderate 6% return over 18 years. State: New York (5% state tax, $5,000 deduction limit). No lump sums.

The account grows to approximately $75,600 at age 18. With NY's $5,000 annual deduction at 6.85% state tax, annual state savings ≈ $342/year × 18 years = roughly $6,160 in total state tax savings over the savings period. Coverage of a public in-state COA target (projected at ~$175,000 over 4 years): approximately 43%. The 529 covers nearly half the projected cost on $200/month alone — the rest may come from aid, work-study, or loans.

Takeaway: Starting at birth with even a modest $200/month produces meaningful coverage without strain. The 18-year compounding window is the most powerful input — every year earlier you start materially increases the outcome.

2

Late starter: $500/month + $25k lump sum at age 12

Parents start saving when their child is 12 — 6 years from college. They contribute $500/month and add a $25,000 lump sum upfront from a bonus. Moderate 6% return. No state deduction (California).

After 6 years, the 529 grows to approximately $83,500. The $25,000 front-loaded lump sum contributes nearly $35,500 of that final balance (grew to ~$35,500 at 6% over 6 years). Without the lump sum, the monthly contributions alone would reach ~$50,000. The lump sum effectively added $33,500 in value. Coverage of public in-state target: roughly 55%.

Takeaway: When the savings runway is short, front-loading a lump sum is critical. A $25k contribution at year 1 outperforms $25k spread over 5 years because more of it compounds for longer. Late starters should aggressively use windfalls (tax refunds, bonuses, inheritances) to catch up.

3

High-income NY family: maximizing state deductions

Married couple in New York, 32% federal bracket, 6.85% NY state rate. They contribute $10,000/year (the joint deduction limit) starting when their child is age 5. Aggressive 8% return over 13 years.

Projected balance at age 18: approximately $232,000. NY state tax savings: $10,000 × 6.85% = $685/year × 13 years = $8,905 in cumulative state tax savings. Federal tax-free growth benefit (vs taxable account at 8% return and 15% LTCG drag): approximately $38,000 more in the 529 than in a taxable brokerage. Combined tax advantage over the period: roughly $47,000.

Takeaway: In a high-deduction state with a meaningful income tax rate, the state deduction alone justifies prioritizing the state's own plan. The NY deduction is worth real money — nearly $9,000 over 13 years — before even counting the federal tax-free growth advantage.

4

Multi-child family: two kids, 4 years apart

Older child (age 8): $350/month × 10 years, $5,000 starting balance, moderate 6%. Younger child (age 4): $250/month × 14 years, $2,000 starting balance, moderate 6%. Combined monthly contribution: $600.

Older child projected balance at 18: approximately $63,000. Younger child projected balance at 18: approximately $62,000. Combined: $125,000. Had they used a single account and split $600/month with one beneficiary, changing after 10 years, the combined value would be slightly lower due to beneficiary-change complexity and non-optimal allocation timing. The separate account approach also allows the younger child's account to stay in a more aggressive allocation for 4 more years.

Takeaway: Separate accounts per child are generally superior for multi-child families. Each account's allocation can match the child's timeline, deductions can be claimed per beneficiary in states with per-beneficiary limits, and there's no complexity around mid-stream beneficiary changes.

5

Grandparent-owned 529: the post-FAFSA Simplification opportunity

Grandparents open their own 529 with the grandchild as beneficiary, contributing $15,000/year for 5 years ($75,000 total). The grandchild applies for college starting in 2027. Under pre-2024 FAFSA rules, each year's distributions from this account would be counted as student income at 50%.

Under the old rules (pre-2024-25): $15,000 distribution × 50% student income rate = $7,500 reduction in aid eligibility per year — a potential $30,000 in lost aid over 4 years. Under current FAFSA Simplification rules (2024-25 forward): $0 FAFSA impact. Grandparent distributions are no longer reported on the FAFSA at all. The grandparents' $75,000 contribution helps pay for college with no aid penalty. Note: CSS Profile schools (approximately 250 private colleges) may still count grandparent distributions — check school-specific policies.

Takeaway: The 2024 FAFSA Simplification Act turned grandparent-owned 529s from a potential aid trap into one of the best gifting vehicles available. Grandparents with estate planning goals or simply wanting to help can now contribute freely without harming the grandchild's aid eligibility at FAFSA schools.

Common mistakes parents make

  1. Waiting until high school to start

    Compound growth is exponential — starting at birth vs. age 10 can nearly double your final balance for the same total contributions. An account started at birth with $200/month grows to roughly $76,000 at age 18. Starting at age 10 with the same $200/month reaches only about $33,000. The 8-year difference in time represents more than double the outcome.

  2. Choosing the home state plan when it has no deduction advantage

    California, Hawaii, Delaware, Kentucky, and North Carolina have income taxes but offer zero state 529 deductions. Residents in these states have no tax reason to use their home state plan. Many home-state plans in these states also carry higher expense ratios. Residents should compare plans nationally (e.g., Utah's my529, New York's Direct Plan) and choose based on investment quality and cost.

  3. Choosing an out-of-state plan when the home state deduction is substantial

    New York's $5k/$10k deduction at 6.85% is worth $342–$685/year. Over 15 years, that's $5,000–$10,000 in state tax savings. If an out-of-state plan has a 0.20% lower expense ratio on a $50,000 balance, that saves $100/year — far less than the deduction. The math favors the in-state plan with a meaningful deduction. Run the numbers for your specific state and contribution level.

  4. Not claiming the state deduction on your tax return

    State 529 deductions are not automatic. In most states, you must enter the contribution amount on your state income tax return (or a specific schedule) each year. This is the most common 529 mistake — parents contribute correctly but forget to claim the deduction they earned. The tax benefit is lost permanently for that year and cannot be claimed retroactively in most states.

  5. Investing too conservatively early

    A 529 for a newborn has an 18-year horizon — longer than most retirement timelines. Age-based target-date portfolios automatically start at ~90% equities and shift toward bonds as college approaches. Parents who manually choose investments often pick conservative options out of caution, inadvertently sacrificing significant long-run growth. Equity-heavy portfolios for young children are appropriate given the long time horizon; the risk profile should only shift 3-5 years before planned withdrawals.

  6. Missing the superfunding opportunity after a windfall

    If a parent receives a significant inheritance, business sale proceeds, or large bonus, the superfunding window is a one-time opportunity to front-load up to $90,000 (single) or $180,000 (joint) into a 529 in a single year. Many families with the financial capacity to superfund simply don't know the strategy exists. The compound growth advantage of an early lump sum vs. spreading the same money over 5 years can be $20,000–$40,000 depending on return rate and time horizon.

  7. Ignoring grandparent coordination after FAFSA Simplification

    Before 2024-25, grandparent-owned 529 distributions counted as student income at 50%, creating an aid trap. Many advisors and articles still warn against grandparent 529s based on the old rules. Under current law, grandparent distributions no longer affect FAFSA at all. Grandparents who want to help should know they can now open their own 529, contribute freely, and distribute without any FAFSA consequence — making their help significantly more tax-efficient than direct gifts.

  8. Taking non-qualified withdrawals without modeling the true cost

    A $50,000 account with 40% earnings has $20,000 in earnings. Non-qualified withdrawal of the full account costs: $20,000 × 10% federal penalty ($2,000) + $20,000 × income tax rate. At 22% federal, that's $6,400 total in federal costs — 12.8% of the withdrawal. Parents sometimes assume non-qualified withdrawals are 'not that bad.' They can be, especially at high income tax brackets. Model it before withdrawing.

  9. Assuming the 529 is locked if the child doesn't go to college

    The SECURE 2.0 Act's 529-to-Roth rollover (up to $35,000 lifetime), the ability to change the beneficiary to another family member (including yourself), the $10,000 student loan repayment option, and K-12 tuition use all provide exit paths beyond the traditional penalty/tax route. Parents who fear being 'locked in' are generally unaware of these options. The question to ask is not 'what if they don't go?' but 'which exit path is best given the facts at that time?'

  10. Over-funding without planning for the rollover

    The SECURE 2.0 rollover allows up to $35,000 to move to a Roth IRA, but at only $7,000/year — that's 5 years of annual rollovers. Families projecting significantly more surplus than $35,000 should plan in advance: consider reducing contributions in later years, changing the beneficiary to a sibling, or modeling whether a taxable brokerage produces a better outcome for the surplus beyond the $35,000 Roth limit.

  11. Not adjusting asset allocation as college approaches

    The risk profile of a 529 should shift as withdrawals approach. A portfolio that was 90% equities when the child was 2 should be largely in stable bonds or cash equivalents by age 16-17. Markets can drop 30-40% in a recession. A $200,000 account at age 15 could fall to $130,000 just before college starts if left in an aggressive allocation. Age-based funds handle this automatically; self-directed investors must update their allocation manually.

  12. Choosing between prepaid tuition and savings plans without modeling

    Prepaid tuition plans lock in tuition at today's prices at participating schools — they're a bet that tuition inflation will exceed investment returns. For families certain their child will attend a state school, prepaid plans can be valuable. For everyone else, the education savings plan offers more flexibility (any school, any state), better returns if markets outperform tuition inflation, and room-and-board coverage. The calculator models education savings plans only; compare against your state's prepaid plan if one is available.

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