529 Plan Calculator
The cost of higher education rises every year. Use our precise 529 forecasting tool to see if your current savings and monthly contributions are on track to fully fund your child's degree.
Last updated: March 2, 2026
Because 529 plans shield all earnings from capital gains taxes, starting early and allowing compound interest to work over 18 years is heavily incentivized by the math.
Why 529 Plans are Formidable
If you are highly confident you or your children will incur college expenses, the 529 plan is arguably the most powerful wealth-building tool in the U.S. tax code specifically for that purpose.
Zero Capital Gains Tax
If you put $50,000 in a normal brokerage account and it grows to $150,000, you owe the IRS massive taxes on the $100,000 profit when you sell. In a 529 plan, that $100,000 profit is completely tax-free if used for education.
State Tax Deductions
Over 30 states will essentially pay you to save for college. For example, if you are a New York couple, you can deduct up to $10,000 of 529 contributions from your state taxable income every single year, yielding an immediate tax refund simply for saving money.
The Roth IRA Safety Net
The biggest historically cited fear of 529s was "what if my kid doesn't go to college?" The SECURE 2.0 Act fixed this. Assuming the account has been open for 15 years, up to $35,000 of unused funds can be seamlessly rolled over into a Roth IRA for the beneficiary to kickstart their retirement.
Frequently Asked Questions
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