529 Plan Calculator 2026
Project your college savings growth and estimate state tax benefits.
529 Plan Details
Projected Balance at Age 18
$109,333
$59,000 contributed · $50,333 growth
State Tax Savings
$180/year · $2,700 over 15 years
College Cost Coverage
In-State Public
4-year cost: $199,577
55%
covered
Out-of-State Public
4-year cost: $365,891
30%
covered
Private University
4-year cost: $482,311
23%
covered
Growth Projection
| Age | Contributed | Growth | Balance |
|---|---|---|---|
| 6 | $15,800 | $2,344 | $18,144 |
| 9 | $26,600 | $7,749 | $34,349 |
| 12 | $37,400 | $16,929 | $54,329 |
| 15 | $48,200 | $30,762 | $78,962 |
| 18 | $59,000 | $50,333 | $109,333 |
Disclaimer
- Returns are not guaranteed. Actual results depend on your plan's investments.
- State tax deductions vary — check your state's 529 plan rules.
- College costs assume 5% annual increase; actual inflation may differ.
What Is a 529 Plan and How Does It Work?
A 529 plan is a tax-advantaged savings account designed to pay for education expenses. Contributions grow tax-free at the federal level, and withdrawals for qualified education costs — tuition, room and board, books, computers — are completely tax-free. Over 30 states also offer a state income tax deduction or credit for contributions, effectively giving you an immediate return on your money.
There are two types of 529 plans. Education savings plans let you invest in mutual funds and the account value fluctuates with the market. Prepaid tuition plans lock in today's tuition rates at participating colleges. The vast majority of families use education savings plans because of their flexibility.
2026 Contribution Limits and Superfunding
529 plans don't have annual contribution limits like a 401(k), but contributions are considered gifts for tax purposes. In 2026, you can contribute up to $18,000 per beneficiary ($36,000 for married couples) without triggering a gift tax return. The "superfunding" provision lets you front-load up to $90,000 ($180,000 for couples) by electing to spread the gift evenly over five years on your tax return — a powerful strategy that maximizes compound growth.
Most states set a lifetime maximum between $235,000 and $550,000 per beneficiary. Once the account reaches that cap, you can no longer contribute, but existing funds continue growing tax-free.
State Tax Deductions — The Immediate Bonus
More than 30 states offer an income tax deduction or credit for 529 contributions. Some states (like Colorado, South Carolina, and Indiana) let you deduct the full contribution amount with no cap. Others cap the deduction — for example, New York allows up to $5,000 ($10,000 for joint filers). A few states — including Arizona, Kansas, and Pennsylvania — offer the deduction even if you use an out-of-state plan. If your state gives you a 5% tax deduction on $10,000, that's an instant $500 return before any investment growth.
New Roth Rollover Rule (SECURE Act 2.0)
Starting in 2024, unused 529 funds can be rolled over to a Roth IRA in the beneficiary's name — subject to annual Roth contribution limits, a $35,000 lifetime cap, and a 15-year account age requirement. This eliminates the biggest fear parents had about 529 plans: losing money to penalties if their child doesn't use all the funds for education.
Qualified Expenses Beyond Tuition
- Tuition and fees at any accredited college, university, or vocational school
- Room and board (up to the school's cost of attendance)
- Books, supplies, and required equipment
- Computers and internet access
- Up to $10,000/year for K-12 tuition
- Up to $10,000 lifetime for student loan repayment
How Much Should You Save?
The average cost of a 4-year public university (in-state) is roughly $110,000 in 2026 dollars, while private universities average $230,000+. Starting early is critical — a family saving $400/month from birth with a 7% return could accumulate over $155,000 by age 18. Waiting until age 8 would require roughly $1,000/month to reach the same goal.
529 Plan Monthly Savings Guide
| School Type | 4-Year Cost (2026) | Save/Month from Birth | Save/Month from Age 8 |
|---|---|---|---|
| Public (in-state) | ~$110,000 | ~$290/mo | ~$735/mo |
| Public (out-of-state) | ~$175,000 | ~$460/mo | ~$1,170/mo |
| Private | ~$230,000 | ~$605/mo | ~$1,540/mo |
Assumes 7% annual return. Starting early makes a dramatic difference.
Frequently Asked Questions
What happens to unused 529 funds?
You can change the beneficiary to another family member, use funds for your own education, or roll up to $35,000 into a Roth IRA (SECURE Act 2.0). Non-qualified withdrawals incur income tax plus a 10% penalty on earnings only.
Can grandparents contribute to a 529 plan?
Yes. Anyone can contribute to a 529 plan. Since 2024, grandparent-owned 529 plans no longer count against FAFSA financial aid eligibility, removing a major previous drawback.