529 Plan โ Tax-Advantaged College Savings
Tax-free growth, state tax deductions, superfunding. K-12 and college. Roth rollover option. 2026 gift: $18K/donor.
Why This Matters for Your Finances
Why: 529 plans offer tax-free growth and many states offer deductions. Superfunding lets you front-load with a 5-year gift election.
How: FV = PV(1+r)^n + PMTร[(1+r)^nโ1]/r. Tax-free. State deduction reduces state tax. Superfunding uses 5yr gift election.
- โ$18K gift limit 2026
- โ$90K 5yr superfund
- โRoth rollover $35K (2024+)
- โK-12 $10K/yr
Sample Scenarios โ Click to Load
Beneficiary Information
Contributions
Tax Information
Per taxpayer
Consider superfunding strategy to front-load contributions for more growth time.
64% of goal
Year-by-Year Projection
| Year | Age | Contribution | Growth | Balance |
|---|---|---|---|---|
| 0 | 5 | $10,000 | $0 | $10,000 |
| 1 | 6 | $3,600 | $936 | $14,300 |
| 2 | 7 | $3,600 | $1,237 | $18,901 |
| 3 | 8 | $3,600 | $1,559 | $23,824 |
| 4 | 9 | $3,600 | $1,903 | $29,092 |
| 5 | 10 | $3,600 | $2,272 | $34,728 |
| 6 | 11 | $3,600 | $2,666 | $40,759 |
| 7 | 12 | $3,600 | $3,089 | $47,212 |
| 8 | 13 | $3,600 | $3,540 | $54,117 |
| 9 | 14 | $3,600 | $4,024 | $61,505 |
| 10 | 15 | $3,600 | $4,541 | $69,411 |
| 11 | 16 | $3,600 | $5,094 | $77,869 |
| 12 | 17 | $3,600 | $5,686 | $86,920 |
| 13 | 18 | $3,600 | $6,320 | $96,605 |
Calculation Breakdown
Contribution Analysis
Growth Projection
Tax Benefits
Goal Analysis
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โ ๏ธFor educational purposes only โ not financial advice. Consult a qualified advisor before making decisions.
๐ก Money Facts
2026 gift limit
โ IRS
5yr superfund
โ IRS
Roth rollover
โ SECURE 2.0
1. Key Takeaways
- โข Tax-free growth and withdrawals
- โข State deductions vary by state
- โข 2026 gift: $18K/donor, $36K couple
- โข Superfunding: 5yr election $90K
- โข K-12 and college eligible
- โข Roth rollover $35K (2024+)
2. Did You Know?
$18K
2026 gift limit
$90K
5yr superfund
K-12
$10K/yr
Roth
$35K rollover
State
Deduction varies
No limit
Federal contrib
3. How It Works
FV = PV(1+r)^n + PMTร[(1+r)^nโ1]/r. Tax-free. State deduction reduces state tax. Superfunding uses 5yr gift election.
Inputs
Balance, contribution, return, years, state, tax bracket
Outputs
Projected balance, tax savings, state benefit
4. Expert Tips
State plan
Check your state deduction
Superfund
Front-load if you can
Roth rollover
Unused โ Roth 2024+
Change beneficiary
To family member
5. Comparison Table
| Feature | 529 | ESA |
|---|---|---|
| Limit | High | $2K/yr |
| State deduct | Yes | No |
| K-12 | Yes | Yes |
| Phase-out | No | Yes |
6. FAQ
Varies. Check your state 529.
$90K = 5yr gift election. No more gifts 5yr.
Change beneficiary or Roth rollover $35K.
Yes, $10K/yr for private school.
7. Quick Stats
$18K
Gift 2026
$90K
5yr superfund
$35K
Roth rollover
$10K
K-12/yr
8. Sources
9. Disclaimer
โ ๏ธ Warning: Estimates only. State rules vary. Not financial advice.