Harrisburg, PA - Treasurer Stacy Garrity today announced that asset-based fees will be waived for PA 529 Guaranteed Savings Plan (GSP) account owners for the second consecutive fiscal year. Fee waivers, resulting in a savings of $5.5 million for account owners, will be funded by PA 529 GSP surplus earnings. In total, PA 529 fee cuts made by Treasurer Garrity will have saved account owners more than $11 million by the end of Fiscal Year 2023-24.
PA 529 Investment Plan (IP) account owners will also see a second fee reduction this year, as state fees will decrease by 0.5 basis points (0.005 percent) effective September 1, 2023. Last month Treasurer Garrity announced a reduction in operational support fees by 1.25 basis points (0.0125 percent). Combined, the IP fee reductions will result in a savings of more than $800,000 for account holders throughout this fiscal year.
“I’m cutting these fees because the great PA 529 College and Career Savings Program should be as affordable as possible for every family in our state. Lower fees help Pennsylvanians save more for their children’s education. PA 529 accounts are a tremendous tool to help the next generation afford the training and education they’ll need to enter the workforce, whether they attend one of our great technical schools, community colleges, or four-year universities – or if they enter an apprenticeship.”
Pennsylvania State Treasurer & Retired U.S. Army Reserve Colonel, Stacy Garrity
There are more than 287,000 PA 529 accounts, including more than 111,000 PA 529 GSP accounts and more than 175,000 PA 529 IP accounts. Families have nearly $7 billion saved for future education expenses.
PA 529 accounts are designed to help Pennsylvania families steadily and strategically save for a wide variety of qualifying technical, collegiate, apprenticeship and K-12 educational expenses. Both PA 529 plans have significant state and federal tax advantages , and assets saved in PA 529 accounts do not affect eligibility for state financial aid.
The PA 529 GSP allows families to save at today’s tuition rates to meet tomorrow’s tuition costs. Account earnings are based on college tuition inflation rates, and families can choose the tuition credit rate they wish to save at from community colleges to Ivy League universities.
The Morningstar Silver Rated PA 529 IP offers a variety of investment options, and account earnings are directly tied to financial market performance.
To learn more about how to start saving with PA 529, visit pa529.com or call 800-440-4000.