529 & Custodial Roth IRA Calculator
Maximizing your 529 is smart, but it doesn't have to be your only play.
A 529 can be a powerful education savings tool, but seeding a Roth IRA early can give your child something different: decades of tax-advantaged growth, more long-term flexibility, and the ability to withdraw contributions penalty-free for any reason.
The catch is that Roth IRA contributions require earned income. Halfmore helps parents create the structure around that income by documenting age-appropriate household work, running payroll, and helping families route eligible earnings toward a custodial Roth IRA.
Use this calculator to see how combining a 529 with early Roth IRA contributions could give your child both college funding and a massive head start on long-term wealth.
529 & Roth IRA Calculator
Pick between age 0 and 17
Allocation between Custodial Roth IRA and 529 plan
Long-term S&P 500 average. A Roth can stay aggressive since the time horizon is decades, not years.
A bit lower, since 529 portfolios usually shift conservative as college nears to avoid losses right before tuition is due.
How do assets affect the FAFSA?
The FAFSA (Free Application for Federal Student Aid) is the form families file to qualify for college aid. It produces a Student Aid Index (SAI), an index number colleges use to determine financial aid eligibility and build aid offers. A lower SAI can indicate greater financial need, but it is not the amount your family is expected to pay and does not guarantee additional aid. Where you hold your savings can affect that number.
FAFSA Student Aid Index (SAI): Asset Impact
Projected at age 18 · when financial aid is calculatedParent-owned 529 is a reportable parent asset. Up to 5.64% of the balance may affect the SAI under the full formula.
A Roth IRA is a qualified retirement account. Balances are not reported as an asset on the FAFSA.
in asset-driven SAI compared with holding the same projected balance entirely in a parent-owned 529, a 38% reduction in this simplified estimate. Splitting 65% / 35% (529 / Roth) excludes the Roth balance from the FAFSA asset calculation. Actual SAI and aid outcomes depend on the full FAFSA formula and the college's aid offer.
