529 Calculator
Plan your child's college education with a 529 savings plan. Calculate contributions, tax benefits, investment growth, and the funds available for qualified education expenses.
Tax Benefits
Savings Projection
Future Value:
$0.00
Total Contributions:
$0.00
Investment Growth:
$0.00
Tax Savings
Tax-Free Growth:
$0.00
Tax Savings Value:
$0.00
Effective Return:
0.00%
College Funding
Annual Tuition Covered:
$0.00
4-Year Total:
$0.00
Funding Status:
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Understanding 529 Plans
A 529 plan is a tax-advantaged savings plan designed to encourage saving for future education costs. Named after Section 529 of the Internal Revenue Code, these plans offer tax-free growth and tax-free withdrawals for qualified education expenses.
529 Plan Benefits
Tax Advantages
- Tax-free growth on investments
- Tax-free withdrawals for qualified expenses
- State tax deductions in many states
- No federal deduction, but tax-free compounding
Investment Options
- Age-based portfolios (automatically adjust)
- Static allocation options
- Individual fund selection
- Low-cost index funds available
Qualified Education Expenses
Higher Education:
- Tuition and fees
- Room and board
- Books and supplies
- Computers and technology
- Special needs equipment
K-12 Education:
- Tuition (up to $10,000/year)
- Books and supplies
- Computers and technology
- Online education
- Tutoring services
Contribution Limits
| State | 2024 Limit | Lifetime Limit |
|---|---|---|
| Most States | $18,000/year | $400,000+ |
| California | $10,000/year | $470,000 |
| New York | $10,000/year | $520,000 |
529 Plan Types
Prepaid Tuition Plans:
- Lock in current tuition rates
- Guaranteed future value
- Limited to in-state schools
- Lower risk option
Savings Plans:
- Investment-based growth
- Can be used at any college
- More flexibility
- Market risk involved
Planning Tips
Maximizing Your 529 Plan
Start Early:
- Begin saving as soon as possible
- Take advantage of compound growth
- Consider gifting to family members
- Use annual exclusion gifts
Investment Strategy:
- Choose age-appropriate funds
- Consider risk tolerance
- Review and rebalance periodically
- Compare fees and performance
Key Takeaways for 529 Plans
- 529 plans offer tax-free growth and withdrawals for qualified education expenses
- Contributions are not federally deductible but grow tax-free
- Many states offer tax deductions for contributions to their 529 plans
- Funds can be used at any accredited college or university
- Prepaid plans lock in tuition rates, savings plans offer investment growth
- Annual contribution limits vary by state, lifetime limits are high
- Non-qualified withdrawals are taxed and penalized
- Consider your state's plan for maximum tax benefits