Tax Benefit Calculator

Compare a tax-free account with a taxable account

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per month toward college

Monthly Savings Goal

0400800120016002000

Use the slider to see how your savings go up the more you contribute each month

10
The calculator uses the specified hypothetical annual rate of return to estimate hypothetical earnings on education savings. There is no guarantee that the rate used here will be achieved.
6%

Federal Tax Rate View Rates

State Tax Rate View Rates

Your Results

Savings in tax-free account vs. taxable account

Chart

Bar chart with 2 data series.
The chart has 1 X axis displaying categories.
The chart has 1 Y axis displaying values. Range: 0 to 10000.
End of interactive chart.

After 10 years, you’ll have $8,979 or $999 more in a tax-free account than in a taxable account based on your federal tax rate of 32% and state tax rate of 3.5%

Earnings in a 529 savings plan grow federal and state tax free and are excluded for income tax purposes when used for qualified higher-education expenses.

Reminder

Disclosures