Tools · Family · 2026 gift tax

529 vs taxable calculator

Tax-free 529 growth vs a taxable brokerage taxed once at withdrawal at your entered long-term capital-gains percent. Type the return — 7% is an example, not this morning’s auction. 2026 gift exclusion $19,000 per donor (Rev. Proc. 2025-32). Superfund is five years on Form 709, not a Venmo. Primer: 529 vs brokerage. Sequence: college funding stack.

The 529

Current balance ($) Monthly contribution ($) Extra this year ($) Years until first tuition Expected return % (yours, not a scrape)

Same return in both wrappers. Age-based 529 glide paths usually earn less than 7% in the last five years. Type a lower number if you will be in bonds by junior year.

The taxable twin

Cap-gains tax % at withdrawal Ordinary tax % if the 529 is not qualified How the 529 comes out This year’s donor

Taxable is modeled as one LTCG bill at the end, not annual dividend drag. Type a lower return if you want that drag. Direct tuition paid to the school is a separate unlimited gift — it is not this contribution.

529 vs taxable

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Educational estimate. Federal 529 has no annual contribution cap; the $19,000 / $38,000 numbers are the 2026 gift-tax annual exclusion (Rev. Proc. 2025-32 §4.42(1)), not a 529 ceiling. Superfund $95,000 / $190,000 is IRC §529(c)(2)(B) on a filed Form 709. K-12 $20,000 per beneficiary for 2026: IRS Topic 313 (was $10,000 through 2025). Student-loan repayments $10,000 lifetime per person. 529-to-Roth $35,000 lifetime, annual Roth cap $7,500 in 2026 (Notice 2025-67), 15-year clock, last five years of contributions ineligible. State deduction is not modeled. Paid sequence: college funding stack. Not advice.