529 Balance at College

projected

Future College Cost

with inflation

Monthly Savings Needed

to cover 100%

Child & College Info

Child's Current Age

College Start Age

School Type

Current 529 Balance

Growth & Inflation

Investment Return

annual7.0%

3%12%

College Inflation

annual5.0%

2%10%

🏫

Future 4-Year College Cost

—

projected with college inflation

529 Balance at College

—

tax-free growth

Future Total Cost

—

4 years with inflation

Coverage

—

of college costs

Monthly Savings Needed

—

to cover 100%

Tax-Free Growth

—

earned in 529

Years to College

—

years to save

529 Balance Growth Year by Year

529 Balance Total Contributed

Year-by-Year Growth ▼

Year	Contributed	Growth	529 Balance

College cost inflation historically ~5-6%/year. 529 withdrawals for qualified education expenses (tuition, room, board, books) are tax-free federally. Non-qualified withdrawals incur income tax + 10% penalty on earnings. This is not financial advice.

529 College Savings Calculator — 2026 Guide

A 529 plan is a tax-advantaged savings account for education expenses. Contributions grow tax-free and qualified withdrawals are 100% tax-free. Many states add an income tax deduction for contributions.

⚡ 529 Quick Reference — 2026

Annual gift tax exclusion$18,000/person

5-year superfunding$90,000 lump sum

Tax on qualified withdrawals$0 federal

Non-qualified penalty10% + income tax on earnings

Public in-state cost (avg, current)~$30,000/yr

Private 4-year (avg, current)~$60,000/yr

College cost inflation (historical)~5-6%/yr

529 vs Other College Savings Options

529 Plan: Best for most families. Tax-free growth + withdrawal. No income limits. Can change beneficiary. SECURE 2.0: unused funds can roll to Roth IRA ($35K lifetime limit).
Coverdell ESA: Lower contribution limit ($2,000/yr), income limits, but can cover K-12 expenses too.
UTMA/UGMA: Taxable account transferred to child at 18-21. No tax advantages but more flexibility.
Roth IRA: Contributions can be withdrawn for college (penalty-free). Preserves retirement savings if child doesn't attend.

What happens to a 529 if my child doesn't go to college?+

Several options: (1) Change beneficiary to another family member (siblings, cousins, even yourself). (2) SECURE 2.0 (2024+): roll up to $35,000 lifetime to beneficiary's Roth IRA, subject to annual Roth IRA limits and 15-year account age. (3) Use for graduate school. (4) Withdraw — pay income tax + 10% penalty only on earnings, not principal. Most families find a use for 529 funds.

Does a 529 affect financial aid eligibility?+

Parent-owned 529s count as a parental asset on FAFSA (max 5.64% impact). Student-owned and third-party (grandparent) 529s had harsher rules, but starting 2024-25 FAFSA, grandparent-owned 529s no longer count against aid at all. Parent-owned 529 has minimal aid impact vs the large tax-free growth benefit.

Can I use a 529 for K-12 education?+

Yes — up to $10,000/year from a 529 can be used for K-12 tuition at public, private, or religious schools (federal law). Some states match this, others don't. Check your state's rules before using 529 for K-12 to ensure you get the state tax deduction on those withdrawals.

📌 Live Summary

529 balance at college—

Future college cost—

Coverage %—

Monthly savings needed—

Tax-free growth—

Years to save—

📌 Current College Costs

Public in-state (avg/yr)~$30K

Public out-of-state~$45K

Private 4-year~$60K

Community college~$10K