Updated May 2026

529 Plan Calculator: How Much You Need to Save Based on Your Child's Age, Your State, and Tomorrow's Tuition

A child born today will face tuition 70-100% higher than current rates. In-state public colleges cost $25,290 per year right now. By 2044, that same education will run $62,200 per year. This calculator projects future costs, models tax-free 529 investment growth, and shows exactly how much you need to save starting today.

529 College Savings Projector

Adjust the sliders to model your savings scenario. All projections use 2026 data.

Child's Current Age: 2 years old

NewbornAge 17

State of Residence

Current 529 Balance: $5,000

$0$200,000

Monthly Contribution: $300

$0$2,000/mo

Target Institution Type

Investment Risk Level

Years to College

Projected Annual Cost

$59,565

per year at enrollment

Total 4-Year Cost

$238,258

Projected 529 Balance

$120,955

Shortfall

$117,303

below target

Needed Monthly

$633

to fully fund goal

Investment Growth Breakdown

Total contributions$62,600

Tax-free investment growth+$58,355

Projected balance$120,955

529 vs Taxable Account Comparison

529 plan balance (tax-free growth)$120,955

Taxable account balance (4.5% after-tax return)$94,392

529 tax advantage+$26,563

State Tax Benefit: New York

$5,000/$10,000

Rating: A

2026 Key 529 Numbers at a Glance

All figures reflect current IRS limits, SECURE 2.0 provisions, and OBBBA changes effective January 1, 2026.

Annual Gift Exclusion

$19,000

per person (single)

Superfunding Limit

$95,000

single / $190,000 married

529-to-Roth Rollover

$35,000

lifetime limit (SECURE 2.0)

K-12 Annual Limit

$20,000

raised from $10,000 (OBBBA)

2026 College Cost Benchmarks and Future Projections

Tuition has grown 5-8% annually for two decades, outpacing general inflation by 2-3x. The table below shows current costs alongside two projection points at 5.5% annual growth.

Institution Type	Annual 2026	Projected 2040	Projected 2044	4-Year Total (2044)
In-state public	$25,290	$49,700	$62,200	$248,800
Out-of-state public	$43,890	$93,500	$118,000	$472,000
Private university	$58,600	$115,100	$144,000	$576,000
Ivy League	$82,000	$131,700	$154,200	$616,800

Sources: College Board Annual Survey of Colleges, NCES Digest of Education Statistics. Projections use 5.5% annual growth for public and private institutions, 4% for Ivy League (endowment-subsidized). Includes tuition, fees, room and board.

State Tax Benefits: The Hidden Multiplier

Contributing $10,000 per year to a 529 in South Carolina (fully deductible) saves a family in the 7% state tax bracket $700 per year. Over 18 years, that is $12,600 in tax savings alone, before accounting for investment growth. California residents get $0 in state deduction despite having some of the highest income tax rates in the country.

Top States for 529 Tax Benefits

Indiana

20% tax credit up to $1,500/yr

A+

South Carolina

Full contribution deductible, no cap

A+

Colorado

Full contribution deductible, no cap

A+

West Virginia

Full contribution deductible, no cap

A+

Illinois

Up to $20,000/yr joint deduction

A+

States With No 529 Deduction

These states offer no state income tax deduction or credit for 529 contributions:

CaliforniaDelawareHawaiiKentuckyMaineNew JerseyNorth Carolina

If you live in a no-deduction state, consider Utah my529, Nevada Vanguard 529, or New York 529 for their low expense ratios. Federal tax-free growth still applies regardless of state.

See all 50 states with deduction amounts

529 vs Other College Savings Options

A quick comparison of the major college savings vehicles and their key tradeoffs.

Account Type	Tax on Growth	State Deduction	FAFSA Impact	Flexibility
529 Plan	Tax-free	30+ states	5.64% (parent)	Education-focused
Roth IRA	Tax-free	None	Excluded*	High (retirement/edu)
UTMA/UGMA	Kiddie tax	None	20% (student)	Full
Brokerage	Capital gains 15-23.8%	None	5.64% (parent)	Full
HYSA	Interest taxed	None	5.64% (parent)	Full

*Roth IRA assets are excluded from FAFSA if the parent is the owner. Qualified distributions for education may count as income if taken from retirement account.

529 vs Roth IRA

Full comparison with SECURE 2.0 rollover strategy

529 vs Coverdell ESA

Contribution limits, income rules, K-12 coverage

529 vs Savings Account

Growth projections, after-tax values, FAFSA impact

What If My Child Does Not Go to College?

The fear of locking up money is the most common reason parents delay opening a 529. The options below show why that fear is largely outdated.

Transfer to Another Family Member

Change the beneficiary to a sibling, cousin, niece, nephew, or even yourself. No taxes, no penalties. If your first child gets a full scholarship, transfer the account to your second child.

Roll to a Roth IRA (SECURE 2.0)

Up to $35,000 lifetime can roll from a 529 into a Roth IRA for the beneficiary. The 529 must be open 15+ years. Annual limit matches the Roth contribution cap ($7,500 in 2026).

K-12 Private School Tuition

The OBBBA 2026 raised the annual K-12 limit to $20,000. Expanded expenses now include tutoring, test fees (AP, SAT), dual enrollment, and therapies for students with disabilities.

Trade Schools and Apprenticeships

Any accredited institution with a federal school code qualifies. OBBBA 2026 added postsecondary credentialing programs: welding, aviation mechanics, electrician training, CDL programs, and more.

Contribution Limits and Superfunding

529 plans have no IRS annual contribution limit, but large contributions interact with federal gift tax rules. The superfunding strategy lets you front-load five years of contributions at once for maximum early compounding.

2026 Gift Tax Rules

Annual exclusion (single)$19,000

Annual exclusion (married)$38,000

Superfunding (single)$95,000

Superfunding (married)$190,000

Lifetime gift tax exemption$15,000,000

State Maximum Balances (Selected)

Georgia$235,000

New York$520,000

California (ScholarShare)$529,000

Pennsylvania$511,758

New Hampshire$569,123

Mississippi$235,000

See all state maximum balances

Complete 529 Plan Guides

Plans by State

Compare all 50 state plans

Contribution Limits 2026

$19K exclusion, $95K superfunding

Tax Deductions by State

How much you save in your state

Roth IRA Rollover

SECURE 2.0 $35,000 rollover rules

K-12 Tuition Rules

$20,000 cap, expanded expenses

Trade Schools

Vocational and credentialing programs

Financial Aid Impact

FAFSA rules and grandparent loophole

Superfunding Strategy

$95K lump sum guide

Best 529 Plans 2026

Independent rankings by fees

How Much to Save

Savings targets by child's age

Qualified Expenses

Complete 2026 expense list

529 vs Roth IRA

Side-by-side comparison

Frequently Asked Questions

How much should I contribute to a 529 plan each month?+

The right amount depends on your child's age, your target institution, and your state's tax benefits. For a newborn targeting in-state public university (projected at $62,200 per year by 2044), saving $300 per month at 7% average returns produces roughly $130,000 by age 18. For a private university projected at $144,000 per year, you would need closer to $700 per month from birth. Starting early matters far more than the exact amount because compound growth does the heavy lifting over 16 to 18 years.

What are the tax benefits of a 529 plan?+

529 plans offer two layers of tax benefits. First, investment growth is federal tax-free when used for qualified education expenses. A $100,000 gain in a 529 costs $0 in federal tax, while the same gain in a brokerage account triggers $15,000 to $23,800 in capital gains tax. Second, over 30 states offer a state income tax deduction or credit for contributions. Indiana gives a 20% tax credit worth up to $1,500 per year. Colorado, South Carolina, New Mexico, and West Virginia allow full contribution deductions with no cap. Illinois allows up to $20,000 in joint deductions per year.

What happens to a 529 plan if my child does not go to college?+

You have several strong options. Transfer the beneficiary to another family member (siblings, cousins, spouse, or yourself) with no tax penalty. The funds can also pay for trade schools, registered apprenticeship programs, and vocational certifications. Under the OBBBA 2026, up to $20,000 per year covers K-12 tuition at private or religious schools. Under the SECURE 2.0 Act, you can roll up to $35,000 lifetime from a 529 into a Roth IRA for the beneficiary, provided the account has been open at least 15 years. Non-educational withdrawals trigger income tax plus a 10% penalty only on the earnings portion, not contributions.

Do 529 plans affect financial aid eligibility?+

Parent-owned 529 plans have minimal FAFSA impact following the 2024 FAFSA Simplification Act. Parent assets are assessed at a maximum rate of 5.64%, so a $50,000 529 balance reduces aid eligibility by roughly $2,820. Grandparent-owned 529 distributions are no longer counted as student income on the FAFSA, eliminating what was previously a major drawback. Student-owned 529 accounts are assessed at the parental rate (5.64%), not the student rate (20%), because they are treated as parent assets when the parent is the account owner.

What is 529 plan superfunding?+

Superfunding allows you to front-load five years of annual gift tax exclusions into a single lump sum. In 2026, the annual gift tax exclusion is $19,000 per person, so one contributor can superfund $95,000 in one year ($19,000 times 5 years). A married couple can superfund $190,000 per beneficiary. You must file IRS Form 709 to elect the five-year gift tax spread. No additional gifts can be made to the same beneficiary during the five-year period. This strategy is particularly powerful for newborns: $95,000 invested at birth grows to approximately $323,000 over 18 years at 7% annual return.

Can I use a 529 plan for K-12 private school tuition in 2026?+

Yes. The One Big Beautiful Bill Act (signed July 4, 2025, effective January 1, 2026) raised the annual K-12 withdrawal limit from $10,000 to $20,000. Qualified expenses now include tuition, curriculum materials, books, online educational materials, tutoring, standardized test fees (AP, SAT, ACT), dual enrollment fees, and therapies for students with disabilities. Some states do not conform to the federal K-12 rules, which may trigger state income tax on K-12 withdrawals even though they are federally tax-free. Check your state's conformity before withdrawing.

What is the 529 to Roth IRA rollover rule under SECURE 2.0?+

Starting in 2024, you can roll unused 529 funds directly into a Roth IRA owned by the 529 beneficiary. The 529 account must have been open for at least 15 years. The lifetime rollover limit is $35,000, and annual rollovers cannot exceed the Roth IRA contribution limit ($7,500 in 2026). Contributions and earnings from the last five years are excluded from eligible rollover amounts. The beneficiary must have earned income equal to or greater than the rollover amount, but there are no income limits. This makes the rollover strategy particularly attractive for high earners who are normally phased out of Roth contributions.

Can grandparents contribute to a 529 plan?+

Grandparent contributions are now more strategically attractive than ever. The 2024 FAFSA Simplification Act eliminated the previous rule that counted grandparent 529 distributions as student income (which could reduce aid by up to 50% of the distribution). Grandparents can contribute to a parent-owned 529 plan or open their own plan with the grandchild as beneficiary. The superfunding strategy ($95,000 single or $190,000 married in 2026) is especially popular with grandparents who want to reduce their taxable estate while funding education.