Free Tool · 529 Plan & Education Savings
529 College Savings Calculator
Calculate how much to save monthly to fund college—with 529 tax benefits, tuition inflation, and compound growth.
Quick Answer: A 4-year public in-state degree currently costs ~$112,000 total. Starting a 529 at birth and investing $480/month at 7% return covers the full inflation-adjusted cost in 18 years. Starting at age 10 requires ~$1,850/month for the same goal.
Your College Savings Details
2026 529 Plan Key Facts
| Feature | Details |
|---|---|
| Annual gift tax exclusion | $19,000/yr per contributor (2026) |
| Superfunding (5-yr lump sum) | Up to $95,000 per beneficiary ($190,000 MFJ) |
| Federal tax on growth | Tax-free if used for qualified education expenses |
| State tax deduction | 34 states offer deductions or credits |
| Qualified expenses | Tuition, room & board, books, computers, K-12 (up to $10K/yr) |
| Roth IRA rollover (SECURE 2.0) | Up to $35,000 lifetime (15-yr account age required) |
Frequently Asked Questions
How much should I save monthly for college?
For a public in-state university, starting at birth and targeting the full 4-year cost (projected with 5% tuition inflation) requires roughly $480–$700/month at a 7% return in a 529. Starting at age 5 requires ~$850/month; starting at age 10 jumps to ~$1,850/month. The earlier you start, the more compound growth does the work.
What happens to unused 529 money?
You can: (1) change the beneficiary to another family member tax-free, (2) roll up to $35,000 lifetime into a Roth IRA for the beneficiary under SECURE 2.0 Act (account must be 15+ years old), (3) use for K-12 tuition up to $10,000/yr, or (4) withdraw non-qualified amounts—earnings are taxed as income plus a 10% federal penalty.
Does a 529 affect financial aid (FAFSA)?
A parent-owned 529 is assessed at a maximum 5.64% rate on the FAFSA—minimal impact. Under new 2024 FAFSA rules, grandparent-owned 529 distributions no longer count as student income, eliminating a previous drawback. Student-owned 529s are assessed at 20%, which is less favorable.
Can I use a 529 for K-12 or trade school?
Yes—up to $10,000/year per beneficiary from a 529 can pay K-12 tuition at public, private, or religious schools (federal rule; some states may not conform). 529 funds can also be used at eligible trade schools and vocational programs listed on the federal student aid website.
📋 Disclaimer: Educational projections only. Actual tuition, returns, and state rules vary. Consult a financial advisor for personalized 529 planning. Sources: IRS Publication 970, SECURE 2.0 Act, College Board 2025 Trends in College Pricing.