Use this College Savings 529 plan calculator to calculate the future value of your child’s 529 plan based on regular deposits made to the plan. Simply enter the amount you plan to save for your child every month, the average interest rate you expect to receive and how many years your child has until they need the money
The Importance of Saving Early for Your Child’s Education
Give it a try in the 529 plan calculator. Change the number of years you’ll be saving or alter the percentage points by a few percent and watch how drastically the ending value changes. Now add $10/mo or $20/mo more to the amount you entered in and see how that changes the final value (probably by thousands).
This 529 plan calculator gives you a visual indicator on how a small savings can grow to a big number if you begin saving now for your child.
What are the advantages of a 529 college savings plan?
529 Plan Tax-deferred gains
Not having to pay taxes on the earnings of your savings account has a dramatic affect on the growth of your 529 plan investments. With the tax-free distributions for qualified educational purposes, you get to maximize the money put into the account.
529 Plans Have No Contribution limit
Since the funds in the qualified 529 plan will be used for education, there is no contribution limit. There are some account maximums that vary per state and some states also have a very high annual contribution limit before gift taxes kick-in (upwards of $70,000), but for the majority of Americans, we’ll never touch those limits.
529 Plans Have Professional Asset Management
Professional fund managers will be in charge of your child’s college assets and you can choose between various investment types based on the age of your child and risk you’re willing to assume.