529 Plan Growth Calculator

A common target is to save enough to cover 50-70% of projected college costs, with the remainder covered by scholarships, grants, student loans, and current income during college years. A 4-year public in-state university is projected to cost $110,000-$130,000 by 2036. Saving $300/month from birth at 7% grows to about $128,000 by age 18, covering most of an in-state public education.

529 plans are more flexible than you might think. You can change the beneficiary to another family member (sibling, grandchild, even yourself), use up to $10,000/year for K-12 tuition, or roll up to $35,000 into a Roth IRA for the beneficiary. If you must take a non-qualified withdrawal, you'll pay tax + 10% penalty only on the earnings portion, not your contributions.

Most 529 plans offer age-based portfolios that automatically shift from stocks to bonds as college approaches — these are the simplest choice. When the child is young (0-10), the portfolio is growth-oriented (70-90% stocks). In the middle years (11-15), it becomes balanced (50-70% stocks). In the final years before college (16-18), it shifts conservative (20-40% stocks) to protect against market downturns.