529 Plan Calculator
Project the value of a US 529 college savings plan with tax-free growth.
About the 529 Plan Calculator
529 plans are state-sponsored investment accounts for education. Earnings grow federally tax-free and withdrawals are tax-free for qualified expenses: college costs, up to $10,000 a year of K-12 tuition, and, since 2024, rollovers of up to $35,000 (lifetime) to the beneficiary's Roth IRA under conditions. Many states also give a state tax deduction for contributions.
The formula
Balance = growth of starting amount + growth of monthly contributions
Worked example
Example: Projected 529 balance = $84,560
- Inputs: Current balance: $5,500; Monthly contribution: $280; Years until college: 13 years; Expected yearly return: 7%.
- Formula: Balance = growth of starting amount + growth of monthly contributions
- Result: Projected 529 balance = $84,560
Things to keep in mind
- Non-qualified withdrawals pay income tax plus a 10% penalty on earnings.
Questions people ask
Is there a contribution limit?
No yearly federal limit, but gifts above the annual gift-tax exclusion need reporting; plans set lifetime maximums.
Can I use a 529 plan if my child doesn't go to college?
Yes. Change the beneficiary to another family member, roll some into a Roth IRA within the limits, or withdraw it and pay income tax plus a 10% penalty on the earnings.