529 College Savings Calculator
Plan for your child's future. Calculate how much you need to save monthly to cover tuition, room, and board.
How It Works
College costs are rising faster than inflation. This calculator helps you determine if your current savings strategy will meet your future tuition goals.
Project Costs
We adjust future tuition costs using an estimated education inflation rate (typically higher than standard inflation).
Visual Gap Analysis
See exactly when your savings might run out during the 4-year degree period.
Understanding 529 Plans
A 529 plan is one of the most powerful tools for building an education fund. Named after Section 529 of the Internal Revenue Code, these plans offer significant tax advantages that regular savings accounts cannot match.
Key Benefits
- Tax-Free Growth: Your investments grow without being taxed annually.
- Tax-Free Withdrawals: You pay zero federal tax on withdrawals used for qualified education expenses.
- State Tax Breaks: Over 30 states offer tax deductions or credits for contributions.
- High Contribution Limits: Unlike Coverdell ESAs ($2,000/year limit), 529s have high lifetime limits (often over $300,000).
Frequently Asked Questions
A 529 plan is a tax-advantaged savings plan designed to encourage saving for future education costs. Legally known as 'qualified tuition plans,' they are sponsored by states, state agencies, or educational institutions.