529 Calculator
Calculate your 529 education savings plan and tax-free growth for college or K-12 expenses
529 Education Savings Calculator
Student Information
Student's current age in years
Age when education begins (e.g., 5 for K-12, 18 for college)
Years of education to fund (4 for college, 12 for K-12)
Years to first school year: 13
Years to make deposits: 17
Education Costs
Current annual tuition and expenses
Annual increase in education costs
Investment Details
One-time initial deposit into 529 plan
Expected annual return on investments
Advanced Options
529 Plan Results
Investment Summary
Education Costs by Year
Example Calculation
College Savings Example
Child's current age: 5 years old
College start age: 18 years old
College duration: 4 years
Current annual cost: $12,000
Cost inflation: 4% annually
Initial investment: $1,000
Expected return: 8% annually
Projected Results
Years to save: 17 years (13 years until college + 4 college years)
Total education cost: ~$85,000 over 4 years
Required monthly contribution: ~$190
Total 529 savings: ~$85,000+
*This provides tax-free growth and withdrawals for qualified education expenses
529 Plan Benefits
Tax-Free Growth
Earnings grow tax-deferred
Qualified Expenses
Tax-free withdrawals for education
High Contribution Limits
Save substantial amounts annually
Qualified Expenses
529 Plan Tips
Start early to maximize compound growth
Consider your state's tax benefits
Compare plans from different states
Can change beneficiary to family member
10% penalty on non-qualified withdrawals
Understanding 529 Education Savings Plans
What is a 529 Plan?
A 529 plan is a tax-advantaged savings plan designed to encourage saving for future education costs. Named after Section 529 of the Internal Revenue Code, these plans offer tax-free growth and tax-free withdrawals when 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
Key Advantages
- Tax-free growth: No taxes on investment gains
- Tax-free withdrawals: When used for qualified expenses
- High contribution limits: Up to $300,000+ in many states
- Flexible beneficiary: Can transfer to family members
- State tax benefits: Many states offer deductions or credits
Important Considerations
- Non-qualified withdrawals: Subject to 10% penalty plus taxes
- Investment risk: Account value can fluctuate
- Limited investment options: Restricted to plan offerings