529 College Savings Calculator 2026

Q: What changed with OBBBA for 529 plans in 2026?

OBBBA made three 529 changes for 2026: (1) K-12 tuition withdrawals doubled to $20,000/year (from $10,000). (2) Expanded K-12 expenses: curriculum, textbooks, tutoring, test fees, AP exams, dual enrollment, educational therapy. (3) Postsecondary credential programs now covered — WIOA-approved, professional certs, military credentials.

Q: Can I roll unused 529 money into a Roth IRA?

Yes, under SECURE 2.0 (effective 2024). Up to $35,000 lifetime per beneficiary. Rules: 529 open 15+ years, annual rollover limited to Roth IRA limit ($7,500 in 2026), contributions in last 5 years not eligible, beneficiary must have earned income equal to or greater than rollover amount, Roth income limits are bypassed.

Q: What if my child doesn't go to college?

Options: change beneficiary to family member, roll up to $35K into Roth IRA (SECURE 2.0), use for trade school/apprenticeships/credentials (OBBBA 2026), pay up to $10K student loans per beneficiary, or withdraw non-qualified (income tax + 10% penalty on earnings only — penalty waived up to scholarship amount).

Q: Which states offer the best 529 tax deductions?

New Mexico and South Carolina: unlimited deduction. Colorado: $20,700/beneficiary. Pennsylvania: $19,000/$38,000 (any plan). Illinois: $10,000/$20,000. Tax parity states (any 529 plan): AZ, AR, KS, ME, MN, MO, MT, OH, PA. No deduction: CA, HI, KY, NC. No income tax: TX, FL, WA, NV, AK, SD, TN, WY, NH.

Tax-free growth for education. Project your savings, find your monthly target, or plan a 529→Roth IRA rollover.

Child's current age

Newborn = 0

Monthly contribution

Current 529 balance

School type

College start age

Expected annual return

S&P 500 avg: ~10% nominal, ~7% real

Education cost inflation

Historical avg: 5-6%/year

State (for tax deduction)

State income tax rate

For estimating deduction value

—

529 plans offer tax-free growth and tax-free withdrawals for education expenses. New for 2026 (OBBBA): K-12 withdrawals doubled to $20,000/year. Expanded qualified expenses include tutoring, test fees, and workforce credentials.

Try another scenario

How to Use This Calculator

Tab "College Savings Projector"

Enter your child's age, monthly contribution, current 529 balance, and school type. The calculator projects your balance at college age and compares it to the inflation-adjusted 4-year cost of your target school. In "More options," select your state to see your annual state tax deduction savings — 35+ states offer deductions, with Pennsylvania and Colorado among the most generous.

Tab "How Much Do I Need?"

The reverse calculator. Enter your child's age, school type, and coverage target (50-100%). The calculator tells you the required monthly contribution to reach your goal, factoring in education cost inflation (~5% historically). The "Cost of Waiting" section shows how much more you'd need if you delay starting by 5 years — compound growth penalizes procrastination.

Tab "529 → Roth Rollover"

The SECURE 2.0 provision. Enter the year your 529 was opened, current balance, contributions in the last 5 years, and beneficiary's earned income. The calculator shows how much you can roll into a Roth IRA this year and builds a year-by-year schedule to maximize the $35,000 lifetime cap. The rollover is limited to four constraints: annual Roth IRA limit, earned income, remaining lifetime cap, and eligible balance (excluding last 5 years of contributions).

The Formulas

529 Plan Rules (2026):
No federal tax deduction on contributions
Tax-free growth (no annual tax on dividends/gains)
Tax-free withdrawals for qualified education expenses
Non-qualified withdrawals: earnings taxed + 10% penalty

Gift Tax (2026):
Annual exclusion: $19,000/donor/beneficiary
Superfunding (5-year election): $95,000 ($190,000/couple)

OBBBA 2026 Changes:
K-12 tuition: $20,000/year (doubled from $10,000)
New K-12 expenses: tutoring, test fees, dual enrollment, curriculum
Postsecondary credentials: WIOA-approved, professional certs

529→Roth IRA Rollover (SECURE 2.0 §126):
Lifetime cap: $35,000 per beneficiary
Account must be open 15+ years
Annual limit: Roth IRA contribution limit ($7,500 under 50 / $8,600 50+)
Contributions in last 5 years: not eligible
Earned income: rollover ≤ beneficiary's earned income
Income limits: bypassed (not subject to Roth phase-outs)

Future College Cost:
FV = Current Cost × (1 + inflation)^years
4-Year Total = FV × 4

529 Balance Projection:
FV = Balance × (1 + r)ⁿ + PMT × [((1 + r)ⁿ − 1) / r]
All growth is tax-free — no annual dividend drag

College Costs 2025-2026 (College Board): Public in-state: $25,850/year. Public out-of-state: $45,780/year. Private nonprofit: $60,920/year. At 5% annual education inflation, a newborn's 4-year public in-state cost will be approximately $248,000 in 18 years.

Example

Sofia — Marketing Manager, Age 33, Daughter Age 2, Colorado, $105K Income

Contributes $400/month to Colorado's 529 plan. Targeting 100% coverage of public in-state university. Plans to keep contributing until daughter turns 18.

Monthly contribution$400

Years until college16

Expected return7%

Projected 529 balance at 18~$148,000

Total contributions$76,800

Tax-free growth~$71,200

CO state deduction savings (4.4%)~$211/year

Projected 4-year cost (5% inflation)~$188,000

Coverage~79%

Shortfall~$40,000

Sofia will cover ~79% of her daughter's public in-state university. To cover 100%, she'd need ~$510/month — or start a year earlier at ~$475/month. If her daughter doesn't use all the funds, Sofia can roll up to $35,000 into a Roth IRA (after the account is 15 years old).

Frequently Asked Questions

What is the tax advantage of a 529 plan?▼

A 529 plan offers tax-free growth and tax-free withdrawals for qualified education expenses. Unlike an HSA or Traditional IRA, there is no federal tax deduction for contributions. However, 35+ states offer state tax deductions or credits for 529 contributions — some states (like New Mexico and South Carolina) offer unlimited deductions. The key benefit: your investments grow without any annual tax drag on dividends or capital gains, and withdrawals for tuition, room & board, books, and other qualified expenses are completely tax-free at both federal and state levels.

What changed with OBBBA for 529 plans in 2026?▼

The One Big Beautiful Bill Act (OBBBA) made three major 529 changes for 2026: (1) K-12 tuition withdrawals doubled to $20,000/year per student (from $10,000). (2) Expanded K-12 qualified expenses now include curriculum materials, textbooks, tutoring, standardized test fees, AP exams, dual enrollment, and educational therapy for students with disabilities. (3) Postsecondary credential programs are now covered — WIOA-approved programs, professional certifications, and military credentials. The OBBBA did NOT change the 529→Roth IRA rollover rules (those remain as set by SECURE 2.0).

Can I roll unused 529 money into a Roth IRA?▼

Yes, under SECURE 2.0 (effective January 2024). You can roll up to $35,000 lifetime per beneficiary from a 529 into their Roth IRA. Rules: (1) The 529 must have been open for 15+ years. (2) Annual rollovers are limited to the Roth IRA contribution limit ($7,500 in 2026 under 50). (3) Contributions made in the last 5 years are not eligible. (4) The beneficiary must have earned income ≥ the rollover amount — a non-working student cannot do the rollover. (5) Roth IRA income limits are bypassed. At $7,500/year, it takes about 5 years to max the $35K cap.

What if my child doesn't go to college?▼

You have several options: (1) Change the beneficiary to another family member (sibling, parent, cousin, niece/nephew — broad definition). (2) Roll up to $35,000 into a Roth IRA (SECURE 2.0, requires 15-year account age). (3) Use funds for trade school, apprenticeships, or credential programs (expanded by OBBBA 2026). (4) Pay up to $10,000 of student loans per beneficiary (lifetime). (5) Withdraw non-qualified — you'll pay income tax + 10% penalty on the earnings portion only (contributions come out tax-free since they were post-tax). The penalty is waived if the beneficiary receives a scholarship (up to the scholarship amount).

Which states offer the best 529 tax deductions?▼

Top deductions by cap: New Mexico and South Carolina offer unlimited deductions (in-state plans). Colorado allows $20,700/beneficiary. Pennsylvania offers $19,000/$38,000 with tax parity (any 529 plan qualifies). Illinois: $10,000/$20,000. New York: $5,000/$10,000. Nine states have tax parity (deduction for any 529 plan, not just in-state): AZ, AR, KS, ME, MN, MO, MT, OH, PA. States with no deduction despite having income tax: CA, HI, KY, NC. States with no income tax (deduction N/A): TX, FL, WA, NV, AK, SD, TN, WY, NH.

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