The tool uses the information you provide to estimate future education costs and compare plan options.
What information does the tool use?
The tool flow may ask for information such as:
- Your state of residence
- Household income and tax filing status
- The beneficiary’s age
- Your current savings and annual savings rate
- Your preferred investment approach
- The type of school or institution you are planning for
What 529 plans are considered in the tool?
The tool considers 50 direct-sold 529 Savings Plans. This includes one plan from each state except Wyoming, plus the District of Columbia.
How does the tool determine the recommended and alternate plans?
The tool compares expected state tax benefits and plan fees using the information you provide, including your state of residence and income. The recommended plan is the one with the highest projected value based on those factors.
An in-state plan will always appear as either the recommended or alternate option.
How does the tool estimate future savings?
The growth projection is based on long-term projected returns at different risk levels and assumes the asset allocation becomes more conservative over time. The tool also assumes education costs increase based on the inflation rate associated with that type of institution.
How does the tool estimate the cost of college and financial aid?
The tool provides a projection of future tuition costs using the average financial aid associated with the institution type you select.
Have more questions? Chat with us or call 855-456-7634 to speak with an agent.