Families are encouraged to save for their children’s education
Meadville, PA - Treasurer Stacy Garrity toured Allegheny College today, along with Representative Brad Roae, to promote the PA 529 College and Career Savings Program. The tour was led by Allegheny College Chief of Staff Kevin Kovalycsik. They were joined by Allegheny College Executive Director for Economic, Civic and Community Engagement, Andy Walker.
The tour included stops at the Allegheny Lab for Innovation and Creativity, Bentley Hall, Carr Hall, the Henderson Campus Center, and the Vukovich Center for Communication Arts.
“It’s great to visit a beautiful campus like Allegheny College where students have received a quality education for more than 200 years. As I travel across our state talking to parents and students, they often tell me how glad they are that they’re using PA 529 accounts to help pay for higher education. More families than ever before are saving with PA 529 and taking advantage of the significant tax benefits, and it's never too early – or too late – to open an account.”
Pennsylvania State Treasurer, Stacy Garrity
“Since its founding, Allegheny College has had a longstanding tradition of providing students from a wide range of backgrounds with affordable access to a world-class education that prepares them for successful, meaningful lives. We are grateful to Treasurer Garrity and Representative Roae for visiting our campus today and for their service to the Commonwealth of Pennsylvania and those who live, learn and work here.”
Allegheny President, Hilary L. Link
“Saving a little bit every year in a 529 can really add up over 18 years by the time a child is old enough for college.”
Representative Roae, who represents Meadville and the surrounding communities
“I recently had the pleasure of visiting Allegheny College with Dr. Link. It’s a beautiful campus and a valuable resource in our community. To prepare for the valuable educational experiences offered at Allegheny College and so many other local colleges, universities and trade schools, the PA 529 plan is a great, tax-friendly way to help parents save for their children’s higher education, and I thank Treasurer Garrity for coming to Meadville to help us spread the word about this forward-thinking saving program.”
Senator Michele Brooks, who represents Crawford County
In fiscal year 2020-21, more families than ever before opened PA 529 accounts and saved the most money ever in a single year. Last month, the program reached a new milestone with more than $7 billion in assets. And in September, Treasurer Garrity eliminated the minimum deposit to open a PA 529 account, making it possible for anyone to start saving with as little as one dollar.
There are two PA 529 plans, the PA 529 Investment Plan (IP) and the PA 529 Guaranteed Savings Plan (GSP). PA 529 IP account earnings are based on financial market performance. PA 529 IP account owners can choose from various investment options including target enrollment date portfolios. These options automatically rebalance asset allocation as a child reaches their anticipated enrollment date. The PA 529 IP was recently named a ‘best-in-class’ plan by Morningstar, earning a Silver Rating for the second consecutive year. The PA 529 GSP is a lower-risk option, and earnings are determined by tuition inflation. With PA 529 GSP accounts families pay future tuition at today’s prices.
PA 529 IP and GSP accounts offer great tax benefits including:
- State income tax deductions 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
An added program benefit is that PA 529 account assets do not affect Pennsylvania state financial aid eligibility.
PA 529 accounts can be used to pay for qualified higher education expenses, including tuition, fees, equipment, books, room and board, and other qualified expenses. Accounts can be used at most schools nationwide including community colleges, technical schools, apprenticeship programs and four-year colleges and universities.