529 college savings plans are the most popular way American families save for education. Here’s how balances compare by age and how much you should aim to save.
Table of Contents
Average 529 Balance by Beneficiary Age
Beneficiary Age
Average Balance
Median Balance
0–2
$8,500
$3,500
3–5
$15,000
$7,000
6–8
$21,000
$11,000
9–11
$26,500
$15,000
12–14
$30,000
$18,000
15–17
$33,000
$20,000
18+
$25,000
$14,000
All ages
$27,500
$13,500
Balances for 18+ are lower because money is being withdrawn for college expenses.
529 Balance Percentiles
Percentile
Balance
10th
$1,200
25th
$5,500
50th (Median)
$13,500
75th
$35,000
90th
$80,000
95th
$140,000
99th
$350,000+
How Much College Actually Costs (2026)
Institution Type
Annual Cost (Tuition + Room & Board)
4-Year Total
In-state public university
$24,000 – $28,000
$96,000 – $112,000
Out-of-state public university
$42,000 – $48,000
$168,000 – $192,000
Private university
$55,000 – $65,000
$220,000 – $260,000
Elite private (Ivy League, etc.)
$80,000 – $90,000
$320,000 – $360,000
Community college
$8,000 – $12,000
$16,000 – $24,000 (2 years)
Savings Goals by College Type
How much to save monthly (starting at birth, assuming 7% annual returns):
College Type
4-Year Cost
Monthly from Birth
Monthly from Age 5
Monthly from Age 10
In-state public
$100,000
$260
$395
$700
Out-of-state public
$175,000
$455
$690
$1,225
Private university
$240,000
$625
$945
$1,680
Elite private
$340,000
$885
$1,340
$2,380
Community college (2yr)
$20,000
$52
$79
$140
Starting early makes an enormous difference — the monthly requirement more than doubles when waiting until age 10.
Growth Projections: $250/Month Contributions
Year
Age at Start
Total Contributed
Portfolio Value (7%)
5
Born
$15,000
$17,900
10
Born
$30,000
$43,400
15
Born
$45,000
$79,200
18
Born
$54,000
$108,500
10
Age 8
$30,000
$43,400
8
Age 10
$24,000
$31,200
Growth Projections: Lump Sum + Monthly
Initial Deposit
Monthly Addition
Value at 18 (born, 7%)
$0
$250
$108,500
$5,000
$200
$106,600
$10,000
$150
$100,800
$25,000
$100
$115,000
$50,000
$0
$170,000
$50,000
$250
$278,500
Front-loading (gifting early) leverages compound growth. Five grandparents each contributing $10,000 at birth would grow to $170,000 with no additional contributions.
529 Contribution Limits
Limit Type
Amount
Annual gift tax exclusion (per donor)
$19,000 (2026)
5-year superfunding (per donor)
$95,000
Married couple superfunding
$190,000
Maximum account balance (varies by state)
$235,000 – $575,000
Superfunding Example
Contributors
5-Year Gift
Day 1 Balance
Value at 18 (7%, child age 0)
One parent
$95,000
$95,000
$323,000
Two parents
$190,000
$190,000
$647,000
Two parents + two grandparents
$380,000
$380,000
$1,294,000
Excess 529 Funds: New Options
Thanks to SECURE 2.0, unused 529 funds can now be rolled to a Roth IRA:
Rule
Detail
529 must be open for 15+ years
Account age requirement
Annual rollover limited to Roth IRA contribution limit
$7,000 (2026)
Lifetime rollover limit
$35,000 per beneficiary
Contributions from last 5 years
Not eligible for rollover
Income limits
Do not apply for 529→Roth rollover
This eliminates much of the risk of “over-saving” in a 529.
State Tax Benefits
State
Deduction/Credit
Maximum Benefit
New York
Deduction up to $5,000 ($10,000 joint)
Saves ~$600-$800
Virginia
Deduction up to $4,000/account
Saves ~$200-$400
Colorado
Full deduction
Saves based on contribution
Illinois
Deduction up to $10,000 ($20,000 joint)
Saves ~$500-$1,000
Indiana
20% credit up to $7,500
Up to $1,500 credit
Utah
4.65% credit on contributions
Meaningful savings
Pennsylvania
Deduction up to $19,000/beneficiary
Saves ~$600
Ohio
Deduction up to $4,000/beneficiary
Saves ~$150-$200
States with no income tax
No state tax benefit
Use any state’s plan
⚠️ Some states only give tax benefits for their own state’s plan. Others (like AZ, KS, MO, PA) allow deductions for any state’s plan.
529 vs Other Education Savings
Option
Tax Benefits
Flexibility
Best For
529 Plan
Tax-free growth + state deduction
Education expenses + Roth rollover
Most families
Coverdell ESA
Tax-free growth
K-12 + college, max $2,000/year
Supplemental savings
Custodial account (UTMA/UGMA)
First $1,250 tax-free
Any purpose (child’s asset at 18-21)
Flexible goals
Roth IRA
Tax-free growth
Can withdraw contributions anytime
Dual-purpose (retirement + education)
Savings bonds (I/EE)
Tax-free if used for education
Low returns, low limits
Very conservative savers
Key Takeaways
Average 529 balance is ~$27,500 — but the median is just $13,500
In-state public college costs ~$100K for 4 years — $260/month from birth covers it
Starting at birth vs age 10 more than doubles the monthly saving required
Superfunding ($95K per donor) leverages early compound growth significantly
SECURE 2.0 allows $35K lifetime rollover to Roth IRA for unused funds
State tax deductions can save $200-$1,500/year depending on your state
The top 10% have $80K+ saved in 529 plans — most families are undersaving
Any amount helps — even $50/month from birth grows to ~$21,000 by 18
