If you added a college goal to your plan, your results include a recommended 529 plan, a monthly contribution target, and a projection of how college funding affects your FI date. This article explains what each part of those results means and how to read them.
Where College Sits in Your Priority Order
Your plan funds college savings only after higher-priority items are handled: emergency fund, employer 401(k) match, high-interest debt payoff, and retirement account contributions. This is deliberate — you can borrow for college, but you cannot borrow for retirement. If your plan shows a lower 529 contribution than you expected, it is because dollars are going to higher-priority items first.
College is treated as a prerequisite for FI, not a competitor. Your FI number includes the full cost of college — you only reach FI when both your retirement portfolio and your college funding are on track.
Why Your Plan Recommended a Specific 529
Your results show a recommended 529 plan based on your state of residence. The selection logic works as follows:
No state tax deduction available
If your state does not offer a 529 tax deduction (or has no state income tax), your plan recommends Utah's my529 plan — one of the lowest-cost plans available with strong investment options.
State tax deduction available
If your state offers a deduction for contributing to the in-state plan, your results compare the value of that deduction against the fee difference versus Utah's plan. If the tax savings exceed the higher fees, your home state plan is recommended. Otherwise, Utah wins on net cost.
State accepts any plan for the deduction
Some states (Arizona, Kansas, Pennsylvania, and others) let you deduct contributions to any state's 529 plan. In that case, your plan recommends Utah's plan so you get both the low fees and your state's tax break.
To open and fund the recommended plan, see Opening Your 529 Plan.
Reading Your Contribution Targets
Your plan shows a contribution target for each child — including the total amount needed and the timeline. The engine calculates this by comparing what your 529 currently holds against the present value of all remaining college payments, then sizing contributions to close that gap over the time you have left. If you have multiple children, the child who is most underfunded receives the largest share.
If Your 529 Is Showing as Underfunded
This means your current 529 balance plus projected contributions will not fully cover the college costs you entered. Your plan handles this by earmarking funds from your taxable brokerage account as a backstop — the plan withdraws from the 529 first (tax-free), then pulls the remainder from taxable accounts when tuition payments come due. Your results show exactly how much comes from each source.
How College Affects Your FI Date
Adding a college goal typically pushes your FI date out because it increases the total assets you need before you can stop working. Your plan shows this impact clearly — if you want to see how much, try running a scenario without the college goal and compare the two FI dates.
If College Is Fully Funded
Your 529 and any earmarked taxable assets cover the full projected cost. The plan simulates through the college years — withdrawals happen automatically, and your remaining portfolio supports your FI withdrawal rate.
If There Is a Shortfall
Your results show the exact dollar gap. You can close it by increasing your 529 contribution, adjusting your college cost assumptions (in-state vs out-of-state, percentage covered), or extending your savings timeline.
What Happens to Excess 529 Funds
If your 529 ends up with more than needed — because of market gains, scholarships, or lower costs — the excess is not wasted. Under SECURE 2.0, up to $35,000 of unused 529 funds can be rolled into a Roth IRA for the beneficiary (subject to annual Roth contribution limits and a 15-year account age requirement). Note that 529 balances are not counted toward your net worth or FI number in the plan — they are earmarked for the beneficiary. But any excess beyond what is needed for college is not a loss: the Roth IRA rollover option and the ability to change beneficiaries give you flexibility.
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