$421,000
Average projected tuition cost for two children born in 2022 — including room, board, and fees at a 4-year private university.
That number compounds every year you wait. Your quarterly estimated tax payment? It could be compounding for you instead.
Avg. state deduction
$10,000
per year, per filer
30-year 7% return
14.2×
vs. savings account
↓ Adjust the calculator to see your numbers
Projected at 7% avg. return
$158K
Tax savings est.
$22K
15 years until first semester · $421K avg. target
$13,320
max 5-year federal tax savings at the 37% bracket · $500/mo contribution
22%
24%
32%
35%
37%
"That's four semesters covered by contributions you'd otherwise lose to estimated taxes."
Every dollar you contribute to a 529 reduces your state taxable income — dollar for dollar in most states. For an S-corp owner at the 24% bracket contributing $500/month, that's $1,440 back in your pocket annually before the account earns a single percent.
The LLC founder who started at $300/month when her daughter was born? She's already ahead of 78% of families with college-bound kids — and she hasn't touched a 529 platform yet.
Owner scenario
S-corp · $280K net income · 24% bracket · $500/mo contribution
→ $8,640 in federal tax savings over 5 years
+ state deduction where applicable
$215K
529 at 7% avg. annual return · vs. $166K in HYSA
"The difference between a 529 and a savings account isn't discipline. It's math."
A high-yield savings account at 4.5% grows $500/month into $166K over 18 years. The same contribution in a 529 at a historical 7% average grows to $215K.
That gap — $49K — is three semesters of tuition at a public university. It compounds silently while you run payroll, close deals, and file extensions.
Total contributed
$500/mo × 18 years
$108K
HYSA growth
interest earned at 4.5%
$58K
529 growth
tax-free growth at 7%
$107K
34 states
offer income tax deductions or credits for 529 contributions
"Your state might be paying you to save for college. Most owners never check."
5 of the 12 most-populated business states offer high-value deductions — some unlimited. An LLC owner in Illinois contributing $6,000/year pays zero state income tax on those dollars. In New York, a married couple can deduct $20,000 annually.
$10,000 / $20,000
Single / MFJ per year
At 6% state rate, max annual savings: $0
← Click any state to see its deduction details
See Your Projection →The numbers don't wait for tax season.
Your six-year-old starts high school in eight years. A $400/month 529 started today grows to more than your first year's tuition bill — before you file a single return.
$421K
avg. 2-child tuition cost
34
states with deductions
7%
historical 529 avg. return
$0
tax on qualified withdrawals