College Savings Calculator (529)

A 529 plan is a tax-advantaged savings account designed to pay for education expenses. Contributions grow tax-free, and withdrawals for qualified education expenses (tuition, fees, books, room and board) are also tax-free at the federal level.

College costs have historically increased at roughly 3-6% per year, outpacing general inflation. Using 5% provides a conservative projection. Actual inflation varies by institution type; private universities tend to increase costs faster than public ones.

A common target is to save enough to cover about one-third of projected costs through savings, with the remainder from income and loans. This calculator shows you how much to contribute monthly to fully fund projected costs. Start as early as possible to benefit from compound growth.

Unused funds can be rolled over to another family member's 529, kept for graduate school, or withdrawn (with taxes and a 10% penalty on earnings for non-qualified withdrawals). Starting in 2024, up to $35,000 in unused 529 funds can be rolled to a Roth IRA.

Yes. Up to $10,000 per year per student can be used for K-12 tuition. 529 funds can also be used for eligible vocational and trade schools, apprenticeship programs, and student loan repayment (up to $10,000 lifetime).

Parent-owned 529 accounts count as a parental asset in the FAFSA calculation and reduce aid eligibility by a maximum of 5.64% of the account value. Student-owned accounts are assessed at 20%. Overall, the tax benefits of a 529 typically outweigh the minor aid impact.