How are 529 Plan evaluated in the Balance Sheet?

529 Plans have two aspects to analyze in the Balance Sheet- the current value of the account, and any future contributions that you plan to make to the plan.  Both are relevant to the balance sheet calculation, and are calculated different.

Current Account- This is the value that you entered in the Household Details section of the tool.  Our calculation assumes that you will be using the investment for its intended purpose- education.  Therefore, there is no tax implication assumed.  Your value entered on the Household Details section is unchanged.

Anticipated Savings- This is the value that you entered on the ‘Resources’ tab within the plan.  Again, our calculation assumes that you will be using the investment for education, so there is no tax implication.  We do, however, discount future contributions to assume the Net Present Value of these future cash flows.  You can read more in Net Present Value.