More than 25,000 new PA 529 accounts were opened over the past year
Harrisburg, PA - Pennsylvania Treasurer Stacy Garrity today announced the PA 529 College and Career Savings Program (PA 529) had its best year ever in fiscal year 2020-21, adding 25,004 new accounts while bringing in more than $732 million in total contributions. These numbers are the largest in the nearly 30-year history of PA 529.
“This exceptional growth shows that Pennsylvania families continue to prioritize their children’s futures. PA 529 accounts have been helping families save for education for almost three decades, and it’s incredibly encouraging to see so many people taking advantage of this valuable savings tool. The program continues to evolve and offer families the ability to meet their savings goals — whether their child plans to get a technical certification, attend trade school, or get a college degree.”
Pennsylvania State Treasurer, Stacy Garrity
There are currently more than 265,000 open PA 529 accounts with balances that have grown through contributions and investment growth to a combined $6.8 billion. The first PA 529 account was opened in 1993, when it was known as the Tuition Account Program.
The PA 529 College and Career Savings Program offers two different ways to save: The PA 529 Investment Plan (IP) and the PA 529 Guaranteed Savings Plan (GSP). Both offer important tax benefits, including a Pennsylvania state income tax deduction on contributions and no taxes paid on withdrawals for qualified education expenses. Savings in PA 529 accounts do not affect state financial aid eligibility. Accounts can be opened with as little as $10.
The PA 529 IP – which is one of only 14 such plans to earn a Silver or Gold rating from Morningstar – allows families to choose from a variety of investment options, including target enrollment date portfolios. These portfolios shift investments gradually and automatically as the child nears his or her enrollment date. Returns depend on financial market performance.
The PA 529 GSP is a lower-risk option that allows families to save at today’s college tuition rates to cover future expenses. Account owners can save enough for a semester of college today, and no matter how much tuition increases, the savings will cover that semester in the future.
PA 529 accounts can be used to pay for tuition and eligible fees at four-year colleges, community colleges, technical and vocational training programs, and qualified apprenticeship programs in Pennsylvania and nationwide. Savings can also be used to pay for books, supplies, room and board, and more.
To learn more about the PA 529 College and Career Savings Program, visit pa529.com or call 800-440-4000.