Treasurer Garrity Announces PA 529 College and Career Savings Program Surpasses $7 Billion in Assets

Program offers generous tax advantages to help families save for higher education

Harrisburg, PA - Treasurer Stacy Garrity announced today the PA 529 College and Career Savings Program has reached a new milestone with more than $7 billion in assets. PA 529 accounts help families save for a child’s education expenses while providing generous tax benefits.

“Everywhere I go, I talk with families who are concerned about how they will pay for their child’s future education, and I always talk to them about our tremendous PA 529 program. Reaching this savings milestone, following the best-year ever for program growth, shows that people understand how important PA 529 accounts are to helping families reach their savings goals.”

Pennsylvania State Treasurer, Stacy Garrity

Families have the flexibility to choose the PA 529 Investment Plan (IP) where earnings are tied to financial market performance or the PA 529 Guaranteed Savings Plan (GSP) where earnings are tied to college tuition inflation. There is no minimum required to open an account, and contributions to a PA 529 account can be as little as $1. Last year families saved more than ever before, and a record number of new PA 529 accounts were opened.

“Pennsylvania needs skilled workers, and PA 529 plans can help families save and pay for technical training, apprenticeships, community college, and two- or four-year degrees. PA 529 accounts can help cover the cost of tuition, fees, books, room and board, equipment, and more.”

Pennsylvania State Treasurer, Stacy Garrity

PA 529 IP account owners can choose from a variety of investment options, including target enrollment date portfolios that automatically rebalance asset allocations as a child approaches their anticipated enrollment date. The PA 529 IP was recently awarded its second consecutive Morningstar Silver Rating, ranking it as “Best in Class” among 529 plans nationwide.

PA 529 GSP account owners can choose the tuition level to save at, including community college, state universities, state-affiliated universities, private universities and Ivy League. Families save at today’s credit rates to cover future tuition prices.

Both plans offer generous tax benefits including:

  • PA state income tax deduction on contributions (up to $15,000 per beneficiary per year; $30,000 for married couples);
  • Contributions grow free of federal and Pennsylvania income taxes;
  • No income tax is paid on account withdrawals when used for qualified expenses; and
  • Gift and inheritance tax benefits

Families can make it easy for friends and loved ones to make tax-deductible gifts to a child’s PA 529 account by using the Ugift feature.

Another important feature of the PA 529 program is that every baby born to a Pennsylvania family on or after January 1, 2019 automatically has a $100 Keystone Scholars starter deposit to jump start the child’s education savings. Families are encouraged to open their own PA 529 account to continue saving as early as possible.

To learn more about how to start saving with a PA 529 account visit, email, or call 800-440-4000.

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