529 College Savings Planner
Project how your 529 plan grows, see how much of the balance is tax-free earnings, and estimate your state tax deduction savings. Everything runs in your browser. Nothing is sent anywhere.
A 529 plan lets your college savings grow tax-deferred, and withdrawals are federal tax-free when spent on qualified education expenses such as tuition, fees, books, room and board, up to $20,000 per year for K-12, and up to $10,000 lifetime for student loan repayment. In 2026 you can contribute up to $19,000 per beneficiary per year without gift tax paperwork, or superfund $95,000 at once and elect to treat it as five years of gifts. Leftover money can roll into the beneficiary's Roth IRA, up to $35,000 per lifetime, under SECURE 2.0.
Project your 529 balance
Rules current as of October 2026. Source: Internal Revenue Service (irs.gov)
How the math worked
This is an estimate for planning only, not tax or investment advice. Returns are not guaranteed. The state tax savings estimate assumes your state allows a deduction on the full contribution amount and that you contribute to a plan your state qualifies; many states require you to use their own plan, and some offer no deduction at all. Verify the rules with a tax professional and your state's plan.
Learn how 529 plans work
2026 529 Plan Key Limits and Rules
Every figure below reflects current federal rules for 2026. The annual gift tax exclusion is $19,000 per beneficiary ($38,000 for married couples splitting gifts). The five-year superfunding election lets one person contribute $95,000 at once ($190,000 for a couple) and treat it as five years of gifts on Form 709.
| Rule | 2026 figure | What it means |
|---|---|---|
| Annual gift tax exclusion per beneficiary | $19,000 | Give this much per beneficiary per year with no gift tax return (Form 709) |
| Annual exclusion, married couple splitting gifts | $38,000 | Each spouse uses their own $19,000 exclusion for the same beneficiary |
| Five-year superfunding election (one person) | $95,000 | Contribute 5 x $19,000 at once; elect on Form 709 to treat as $19,000 per year over five years |
| Five-year superfunding election (married couple) | $190,000 | 5 x $38,000 at once with the same five-year election |
| 529-to-Roth IRA lifetime rollover limit | $35,000 | Per beneficiary, over a lifetime; annual Roth IRA limits apply each year |
| Roth rollover: 529 account age | 15+ years | The 529 must have been open for the beneficiary at least 15 years |
| Roth rollover: contribution seasoning | 5+ years | Only funds in the 529 for at least five years may roll over |
| K-12 tax-free withdrawal cap | $20,000/yr | Per beneficiary; raised from $10,000 by the One Big Beautiful Bill Act for distributions after July 4, 2025 |
| Student loan repayment (lifetime per borrower) | $10,000 | Qualified use for the beneficiary's or a sibling's student loans |
| Non-qualified withdrawal penalty | 10% | Federal penalty on the earnings portion, plus income tax on earnings |
| 2026 Roth IRA annual contribution limit | $7,500 ($8,600 age 50+) | Caps each year's 529-to-Roth rollover amount combined with other IRA contributions |
| State aggregate contribution caps | $300,000 to $600,000 | Varies by state; a lifetime maximum per beneficiary set by each plan |
How 529 plans grow tax-free
A 529 plan has three tax advantages that work together. Contributions are made with after-tax dollars, so there is no federal deduction up front. Inside the account, investments grow tax-deferred, which means no tax bill each year on dividends or gains. Withdrawals are federal tax-free when spent on qualified education expenses. That last point is where the real money is: every dollar of growth can escape tax entirely if it is spent the right way.
A worked example shows the scale. A family opens a 529 when a child is born and contributes $500 per month for 18 years at a 7% average annual return. Total contributions: $500 x 12 x 18 = $108,000. The projected balance is about $215,361. The difference, roughly $107,361, is earnings that grow tax-deferred and come out federal tax-free when spent on college costs. In an ordinary taxable account, a large share of those earnings would be reduced by annual taxes and by capital gains tax at the end.
Superfunding amplifies this. A grandparent who can contribute $95,000 at once uses the five-year election: on Form 709, the IRS treats the gift as $19,000 per year for five years, so no gift tax is owed and no lifetime exemption is used. At 7% for 18 years, $95,000 grows to about $333,691, with roughly $238,691 in tax-free earnings. The trade-off is that the giver has used their $19,000 annual exclusion for that beneficiary for all five years, and if they die within the five-year window, the portion assigned to the remaining years comes back into their estate.
The money stays flexible. If the child earns a scholarship or does not need all the funds, the owner can change the beneficiary to another family member, save it for graduate school, or roll up to $35,000 into the beneficiary's Roth IRA once the account is 15 years old. Only non-qualified withdrawals face tax plus the 10% federal penalty, and the penalty applies only to the earnings portion.
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