529 College Savings Calculator
Project your tax-free college savings growth, see exactly how much your state tax deduction saves you, compare all four school types side-by-side, and plan SECURE 2.0 superfunding — all in one calculator.
College savings details
2026 529 key numbers
- Annual gift exclusion$19,000/donorPer beneficiary · IRS Rev. Proc. 2025-32
- Superfunding (single)$95,0005-year gift averaging · one-time lump sum
- Superfunding (married)$190,000Combined from both spouses
- Roth IRA rollover cap$35,000SECURE 2.0 · lifetime · 529 must be 15+ yrs
- K-12 withdrawal limit$20,000/yrFederal; some states don't conform
2024-25 average costs
- 🏛️ Public In-State$29,910/yr
- 🏫 Public Out-of-State$49,080/yr
- 🎓 Private 4-Year$62,990/yr
- 📚 Community College$20,570/yr
Source: College Board 2024-25. Costs rise ~5%/yr.
SECURE 2.0 changes
- Roll unused funds to Roth IRA ($35,000 lifetime)
- K-12 tuition up to $20,000/year
- Apprenticeship programs now qualify
- Student loan repayment ($10,000 lifetime per beneficiary)
College cost inflation — why you need to start early
College costs have risen at approximately 5% per year on average for 50 years — far outpacing general inflation. A child born today who enrolls in college at 18 will face costs 2.4× higher than today. Here's what today's costs project to:
| College type | Today (2024-25) | In 5 years | In 10 years | In 18 years |
|---|---|---|---|---|
| 🏛️ Public In-State | $128,916 | $164,533 | $209,990 | $310,251 |
| 🏫 Public Out-of-State | $211,541 | $269,986 | $344,578 | $509,098 |
| 🎓 Private 4-Year | $271,495 | $346,504 | $442,236 | $653,385 |
| 📚 Community College | $42,169 | $53,819 | $68,688 | $101,484 |
Source: College Board Trends in College Pricing 2024-25. Totals reflect the complete college program cost (2 yrs for community college, 4 yrs for all others), including year-over-year inflation during enrollment.
529 vs. Roth IRA vs. UTMA — which to use for college?
All three accounts can hold college savings, but they work very differently for taxes, control, and flexibility. The right choice depends on how confident you are your child will attend college.
| Feature | 529 | Roth IRA | UTMA/UGMA | Taxable |
|---|---|---|---|---|
| Tax-free growth | Yes | Yes | No | No |
| Tax-free qualified withdrawals | Yes | Contributions only | No | No |
| State tax deduction? | Usually yes | No | No | No |
| 2026 annual limit | $19,000 | $7,500 + income limits | None | None |
| Used for college? | Optimized | Contributions (any time) | Yes | Yes |
| Non-education penalty | 10% + tax on gains | None on contributions | None | None |
| FAFSA impact | 5.64% (parent asset) | Not counted | 5.64%+ | 5.64% |
| Rollover to Roth IRA? | Yes ($35,000 lifetime) | N/A | No | No |
| Beneficiary transfer? | Yes (family members) | No | Irrevocable | N/A |
Strategy: Max the 529 first (state deduction + tax-free growth). If overfunding is a concern, the SECURE 2.0 Roth rollover eliminates most of the risk — leftover funds become retirement savings. Use a Roth IRA as the secondary vehicle if income allows.
Superfunding — front-load years of tax-free growth
IRS rules allow a technique called “5-year gift tax averaging” (superfunding) for 529 plans. Instead of contributing $19,000/year, you can contribute a lump sum of up to $95,000 (single) or $190,000 (married couple) in a single year — treating it as if it were spread over 5 years.
The power of superfunding: $190,000 invested in a 529 at a 6% annual return over 18 years grows to approximately $542,324 — all tax-free. That covers most four-year private university costs projected for a newborn today.
State 529 tax deductions — the hidden bonus most investors miss
Over 30 states offer a state income tax deduction or credit for 529 contributions — on top of the federal tax-free growth. This is an immediate, guaranteed return on the first dollars you contribute each year. Here are some of the most generous:
States with no income tax (TX, FL, WA, NV, WY, SD, AK, TN) and some others (CA, NJ, KY, NC) offer no deduction — but the tax-free growth benefit still applies to everyone regardless of state.
Home state vs. out-of-state 529: the fee vs. deduction trade-off
Many families default to their home state's plan without running the numbers. The right choice depends on whether your state offers a deduction and how much you save vs. the plan's expense ratio. A 0.7% expense ratio difference on $100,000 over 18 years compounds to approximately $15,000 in lost savings.
✓ Use home state
Your state has a meaningful deduction
The deduction provides an immediate, guaranteed return (often 4–9% on first-year contributions). Even if fees are slightly higher, the deduction wins for most contribution levels.
→ Shop nationally
No deduction or no income tax
CA, NJ, KY, DE, HI, ME, NC offer no 529 deduction. No-income-tax states (TX, FL, WA, NV, WY, SD, AK) have no deduction. Pick the lowest-cost plan regardless of state.
★ Any plan qualifies
Tax-parity state
7 states give a deduction for ANY state's 529: AZ, AR, KS, MN, MO, MT, PA. Residents can choose the lowest-fee plan AND still claim their state deduction.
| Top plans for no-deduction state investors | Expense ratio | Fund family | Notable feature |
|---|---|---|---|
| Utah my529 | 0.08–0.16% | Vanguard + DFA | Morningstar Gold; most customizable asset allocation |
| Nevada Vanguard 529 | 0.13–0.20% | Vanguard | Viewable inside your Vanguard account dashboard |
| Illinois Bright Start | 0.07–0.15% | Vanguard | Best for IL residents — also low fees for others |
| Virginia Invest529 | 0.06–0.18% | Vanguard | Lowest expense-ratio floor of major plans |
| New York 529 Direct | 0.12–0.17% | Vanguard | Best for NY residents; good for others too |
Expense ratio comparison: 0.1% vs. 0.8% on a $100,000 balance over 18 years at 7% return saves approximately $15,000 in compounded fees. Sources: Morningstar 529 ratings; valueofstock.com 2026; iadviser.com; savingforcollege.com.
3 529 withdrawal mistakes that trigger the 10% penalty — including the AOTC coordination trap
The 10% penalty only applies to the earnings portion of a non-qualified withdrawal — never the principal. But these three mistakes catch families off guard:
The AOTC coordination trap — the most costly mistake
The American Opportunity Tax Credit (AOTC) provides up to $2,500/year (40% refundable) based on the first $4,000 of qualifying tuition. You cannot use the same $4,000 for both the AOTC and a tax-free 529 withdrawal.
Optimal strategy for AOTC-eligible students (years 1–4 of college):
• Pay the first $4,000 of tuition out-of-pocket (cash, savings, or student loans — not 529)
• Claim the full $2,500 AOTC on your tax return (worth up to $1,000 in refundable credit)
• Use your 529 for remaining expenses: additional tuition, room & board, books, supplies
Annual tuition at a $35,000/year school: $4,000 paid out-of-pocket; $31,000+ from 529 tax-free.
Timing mismatch
529 withdrawals must be taken in the same calendar year as the qualified expenses. Withdrawing in December for January tuition is a mistake. Withdrawing in January for December expenses is also non-qualified.
Room & board — half-time enrollment required
Room and board is a qualified expense only if the student is enrolled at least half-time. If your student takes a lighter semester, room & board withdrawals may be partially non-qualified. Scholarship tip: if a scholarship is received, you can take a penalty-free non-qualified withdrawal up to the scholarship amount — income tax on earnings still applies.
Sources: IRS Publication 970; savingforcollege.com; Fidelity College Planning; resoluteadvisor.com; planhighereducation.com.
The 15-year Roth rollover clock: why you should open a 529 for your newborn today
The SECURE 2.0 Roth rollover — up to $35,000 lifetime — requires the 529 account to be at least 15 years old. The clock starts when you open the account, not when you start contributing meaningfully. A single $50 deposit today for a newborn starts the clock immediately.
Why opening early matters — the clock math
| Account opened at | Rollover-eligible at |
|---|---|
| Birth (2026) | Age 15 (2041) |
| Age 5 | Age 20 |
| Age 10 | Age 25 |
| Age 13 (first year of college savings) | Age 28 — after college |
Full rollover eligibility rules (2026)
✓ Account age: 529 must be open ≥15 years
✓ Contribution seasoning: Funds must be in the 529 for ≥5 years (recent contributions excluded)
✓ Annual rollover limit: $7,500/year (2026 IRA limit; counts against the beneficiary's total IRA contributions)
✓ Earned income: Beneficiary must have earned income ≥ rollover amount that year
✓ Lifetime cap: $35,000 per beneficiary (not inflation-indexed)
⚠️ Beneficiary change: May reset the 15-year clock (IRS final guidance pending — assume it resets)
⚠️ Income limits: Do NOT apply to 529-to-Roth rollovers (unlike regular Roth IRA contributions)
The minimum-contribution strategy
To maximize Roth rollover flexibility: open a 529 for each child at birth with the minimum deposit (often $25–$50), then contribute regularly. The 5-year contribution seasoning means you'll want consistent early contributions too. To move the full $35,000 lifetime cap, you need at minimum 5 years at $7,000/year — but the annual limit is also capped at the beneficiary's earned income, so most rollovers realistically happen when the child is working (ages 15–25).
Sources: SECURE 2.0 Act (Section 126); savvyinvestorguide.com 2026; kitces.com; Empower Financial 2026; comprehensivews.com.
The projected balance, college cost, coverage percentage, and monthly savings needed shown above come from your child's age, current balance, monthly contributions, expected return, college type, and state — calculated instantly in your browser, not from a live 529 plan feed. We compound your balance monthly until age 18, inflate college costs at 5% per year (College Board historical average), and estimate state tax savings from your state's deduction or credit rules. Below are the exact formulas, order of operations, and worked examples you can verify against the calculator.
Core formulas
| Metric | Formula |
|---|---|
| Years until college | max(0, 18 − child age) |
| Monthly growth rate | Annual return % ÷ 100 ÷ 12 |
| Balance each month | Balance × (1 + monthly rate) + monthly contribution |
| Projected annual college cost | Current COA × (1 + 5%)^years until college |
| Total projected college cost | Sum of inflated annual costs over college years (2 or 4) |
| Coverage % | (Projected balance ÷ projected college cost) × 100 |
| Monthly needed to fully fund | Annuity payment to close gap after FV of current balance |
| State tax savings (deduction) | min(annual contributions, state limit) × state tax rate |
| Tax-free growth benefit | Total earnings × 15% (vs. taxable brokerage cap gains) |
Order of operations
Determine savings horizon
Years = 18 − child ageIf the child is already 18 or older, years until college is 0 and no further growth is projected.
Project 529 balance with monthly compounding
Each month: balance = balance × (1 + r) + contributionStarting balance includes any one-time superfunding lump sum. Contributions are added at the end of each month. Returns compound monthly at your selected annual rate.
Inflate college costs to enrollment year
Future COA = today's COA × (1.05)^yearsCollege Board average costs of attendance (tuition, room & board, books, transportation) are inflated at 5% per year until enrollment, then summed over 2 or 4 college years.
Calculate gap and coverage
Gap = projected balance − projected cost; Coverage % = balance ÷ costA negative gap is a shortfall. Coverage above 100% means projected savings exceed the estimated total cost.
Solve for monthly needed
Annuity payment on remaining gap after FV of starting balanceIf you want to fully fund the selected college type, we solve for the monthly contribution that closes the gap given your return rate and time horizon.
Estimate state tax savings
Deductible contributions × state rate (or credit cap)If your state offers a 529 deduction or credit, we apply the published single/MFJ limits and effective state tax rate. No federal deduction is modeled.
College cost inputs (College Board 2024-25)
| Type | Annual COA | Years |
|---|---|---|
| Public In-State | $29,910 | 4 |
| Public Out-of-State | $49,080 | 4 |
| Private 4-Year | $62,990 | 4 |
| Community College | $20,570 | 2 |
All costs inflated at 5%/year until enrollment, then summed over college years.
Worked example 1 — Calculator defaults — age 3, NY, public in-state
Verify: $5,000 + $300/mo × 15 yrs @ 6% → $99,516 vs $268,007 cost (37% covered)
| Field | Value |
|---|---|
| Child age | 3 |
| Years until college | 15 |
| Starting balance | $5,000 |
| Monthly contribution | $300 |
| Annual return | 6% |
| College type | Public In-State |
| State | New York |
| Total contributions | $59,000 |
| Total earnings | $40,516 |
| Projected balance at 18 | $99,516 |
| Projected college cost | $268,007 |
| Coverage | 37% |
| Savings gap | -$168,491 |
| Monthly needed (full fund) | $879 |
| Extra monthly needed | $579 |
| State tax savings / year | $247 |
| Tax-free growth benefit | $6,077 |
Worked example 2 — Illinois — state tax deduction example
Verify: $3,600/yr contributions × 4.95% on deductible amount → $178/yr state savings
| Field | Value |
|---|---|
| Child age | 5 |
| Years until college | 13 |
| Monthly contribution | $300 |
| Annual contributions | $3,600 |
| State | Illinois |
| Deduction type | deduction |
| Single filer limit | $10,000 |
| State tax rate | 4.95% |
| Annual state tax savings | $178 |
| Total state savings (all years) | $2,317 |
| Projected balance at 18 | $70,634 |
| Coverage (public in-state) | 29% |
Constants used
| Item | Value |
|---|---|
| Default child age | 3 |
| Default balance | $5,000 |
| Default monthly contribution | $300 |
| Default return rate | 6% |
| Default college type | Public In-State |
| Default state | New York |
| College inflation rate | 5%/year |
| Gift tax exclusion (2026) | $19,000 |
| Superfunding max (single) | $95,000 |
| Superfunding max (married) | $190,000 |
| Public in-state COA (2024-25) | $29,910 |