529 Calculator
Saving for college requires a plan. A 529 college savings account is a tax-advantaged way to invest toward education expenses. You can use 529 calculator to help you estimate how much you should save to meet your educational goals.
The 529 Calculator (CSC) is an online tool that helps you estimate your child’s future college costs, including tuition, fees, room, and board. You can customize the CSC to include information specific to your family, like how many children you have and their expected college enrollment dates.
This online calculator uses estimates of future college costs and your current savings to help you determine how much more you need to save to reach your college funding goals. These estimates may use either a national average college cost, the estimated future cost of a school selected from the tool’s college-cost database, or a custom amount you enter. The actual future costs of a college education cannot be predicted, and the amounts you need to save can vary significantly depending on your specific investment choices.
You can fund a state-sponsored 529 college savings plan account with contributions that are tax-deductible in most states, and earnings are tax-free when distributed for qualified higher education expenses such as tuition, fees, and room and board at qualifying schools. You can also consider a privately-owned investment vehicle, such as a mutual fund, or a taxable account, such as an individual retirement account (IRA). This tool provides a comparison of some of the features and benefits available with each type of savings option.
How to Calculate 529 College Savings?
To calculate how much you need to save each month, input your child’s age and the number of years until they are ready for college. Then, select a contribution rate. You can also select a target portfolio to focus your investments on a specific year, like graduation.
With a state-sponsored 529 plan, contributions and withdrawals are federally tax-free if used for qualified education expenses. However, state tax laws vary. Consult with a tax advisor for more information. Investments in a my529 college savings plan are not FDIC-insured and are not guaranteed by the State of Utah or any other state. The Program Disclosure Statement contains investment objectives, risks, fees, and other information you should consider before investing.
