529 Plan Calculator
Plan and project your college savings
A 529 plan offers powerful tax advantages for education savings. Contributions grow tax-free, and withdrawals are tax-free when used for qualified education expenses. Many states also offer additional tax deductions for contributions.
529 plans are one of the few tax shelters middle-class families can actually use without a CPA. The trade-off: the money has to be used for education, or you pay income tax plus a 10% penalty on the earnings. Most parents over-fund or under-fund — rarely Goldilocks.
Real-world scenario
Parents start $300/mo at age 5, in-state tuition planning
$300/month for 13 years at 6% real return: roughly $69,000 saved. Add a $5,000 seed at birth: ~$80,000. In-state public university 2038 cost projection (~5% inflation): ~$165K total. They'll cover ~50% — solid for a middle-class plan, not over-funded.
The part most people miss
SECURE 2.0 lets you roll up to $35,000 of unused 529 funds into a Roth IRA in the beneficiary's name (lifetime cap, account must be 15+ years old, subject to annual Roth limits). This kills the 'what if they get a scholarship' fear. Over-funding is no longer a trap — it's a backdoor Roth for your kid.
Student Information
Savings Information
State Tax Benefits
Choose your state to see whether it gives a 529 deduction or credit. No state benefit is assumed.
Annual state tax savings: $0
Savings Projection
Projected Balance at College
$100,541
In 13 years
College Cost Projection
Funding Gap
You're $94,760 short of projected college costs.
To fully fund: Increase to $672/month (+$372)
Tax Benefits Summary
• State tax savings: $0 over 13 years
• Federal tax savings on earnings: ~$6,561 (vs. a taxable account taxed at 15%, if the withdrawals are qualified)
What OBBB changed for 529s
The One Big Beautiful Bill Act (P.L. 119-21, signed July 4, 2025) made three federal changes to §529 plans. State conformity varies — confirm with your state Department of Revenue before relying on any state-tax treatment.
- K-12 annual withdrawal cap doubled to $20,000 per beneficiary starting TY2026 (from $10,000 for 2025 distributions). Cap aggregates across every 529 for the same beneficiary.
- Expanded qualified K-12 expenses (effective at enactment, July 2025): curriculum & instructional materials, online educational materials, outside tutoring by an unrelated qualified tutor, standardized / AP / college-admission test fees, dual-enrollment fees, and educational therapy for students with disabilities.
- New qualified category — postsecondary credentialing expenses (effective at enactment): tuition, books, exam fees, and continuing-education costs for recognized trade and professional certifications and licenses.
Planning around year-end? See the 2026 Year-End Tax Planning Hub — the 529 move is one of the checklist items.
State-by-State 529 Tax Deduction Guide (2026)
The separate 51-jurisdiction registry tracks 38 state-published deductions or credits, 8 full tax-parity states, eligible-plan restrictions, return-related deadlines, carryforwards, recapture rules, and the exact official excerpt supporting each figure.
Open the sourced 2026 state guideFrequently Asked Questions
What is a 529 plan?
A 529 plan is a tax-advantaged savings account designed to pay for education expenses. Contributions grow tax-free, and withdrawals are tax-free when used for qualified education expenses.
What are qualified 529 expenses?
Qualified expenses include tuition, fees, books, supplies, equipment, computers, and room and board (for half-time students). K-12 tuition withdrawals are capped at $20,000 per beneficiary per year starting TY2026 ($10,000 for 2025 distributions), aggregated across every 529 for that beneficiary. OBBB (P.L. 119-21) also expanded qualified K-12 expenses beyond tuition — see the "What OBBB changed for 529s" section below.
Are 529 contributions tax deductible?
There's no federal deduction, but 38 of the 51 jurisdictions (50 states and D.C.) in our sourced registry offer a state income tax deduction or credit for 529 contributions. Limits and eligible plans vary by state, and some states (including California) give none.
What happens to unused 529 funds?
Under SECURE 2.0, unused 529 funds can be rolled over to a Roth IRA for the beneficiary (up to $35,000 lifetime, subject to annual IRA limits). The account must be open 15+ years.
Can I use 529 for K-12 tuition?
Yes. Starting TY2026, OBBB (P.L. 119-21) doubled the annual cap to $20,000 per beneficiary (up from $10,000 for 2025 distributions) at public, private, or religious schools. The cap aggregates across all 529 accounts for that beneficiary. Not all states conform to this federal rule for state-tax purposes.
What did the One Big Beautiful Bill change for 529 plans?
Three federal changes under P.L. 119-21: (1) the annual K-12 tuition withdrawal cap doubles to $20,000/beneficiary starting TY2026 ($10,000 for 2025); (2) qualified K-12 expenses are expanded — effective at enactment (July 2025) — to include curriculum & instructional materials, online educational materials, outside tutoring by an unrelated qualified tutor, standardized/AP/college-admission test fees, dual-enrollment fees, and educational therapy for students with disabilities; (3) a new qualified category, postsecondary credentialing expenses (tuition, books, exam fees, and continuing education for recognized trade/professional certifications and licenses), is also effective at enactment. State conformity varies.
What if my child doesn't go to college?
You can change the beneficiary to another family member, use funds for vocational schools, apprenticeships, or roll over to a Roth IRA. Non-qualified withdrawals incur a 10% penalty plus income tax on earnings.
What is the 2026 annual gift tax exclusion for 529 contributions?
The 2026 annual gift exclusion is $19,000 per donor per beneficiary (Rev. Proc. 2025-32), or $38,000 if married splitting gifts. The 5-year forward 'superfunding' rule lets you front-load up to $95,000 (or $190,000 jointly) without using lifetime exemption — a powerful estate-planning tool for grandparents.
Does my state offer an in-state plan requirement for the deduction?
Most states require contributions to the in-state plan to claim the state income tax deduction or credit, but 8 'tax parity' states give the same deduction for ANY state's 529: Arizona, Kansas, Maine, Minnesota, Missouri, Montana, Ohio, and Pennsylvania. Arkansas also accepts another state's plan, at a lower cap than its own. Always verify against your state DOR's current rules.
Can grandparent-owned 529s still hurt FAFSA aid?
No — as of the 2024-25 FAFSA simplification, grandparent-owned 529 distributions are no longer reported as student income. This eliminates the historic 'grandparent penalty' that could reduce financial aid by up to 50% of the distribution amount.
Can I use 529 funds for student loan repayment?
Yes. SECURE Act allows up to $10,000 (lifetime, per beneficiary) for principal or interest on student loans. An additional $10,000 lifetime limit applies to each of the beneficiary's siblings.
Sources & References
Primary references used for this content
Tax Benefits for Education
View on irs.gov
26 U.S. Code §529 — Qualified tuition programs
View on law.cornell.edu
One Big Beautiful Bill Act — 529 expansions & K-12 cap increase
View on congress.gov
Federal Tax Changes to 529 Plans (OBBB) — Plan Administrator Bulletin
View on irs.gov
Trends in College Pricing
View on research.collegeboard.org
Retirement and Education Updates
View on irs.gov
✓6 primary sources; links re-checked on a weekly rotation by the source watcher
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Disclaimer: This calculator provides estimates for educational purposes only. Not tax, legal, or financial advice. Results may vary based on your specific circumstances. Consult a qualified CPA or tax professional for personalized guidance.