News Release

Harrisburg, PA - As May 29 approaches, Treasurer Stacy Garrity is encouraging families to save for higher education costs with the PA 529 College and Career Savings Program.

“National College Savings Day – or 529 Day – is the perfect time for families to take the first step in saving for education by opening a PA 529 account for their child. Treasury’s PA 529 program has been helping families save for higher education for nearly 30 years, and it’s easier than ever to get started with as little as a $10 initial deposit, and some new account owners may even qualify for an extra $100 to help kick-off their savings.”

Pennsylvania State Treasurer, Stacy Garrity

In recognition of 529 Day, Treasury is providing $100 to the first 529 people who open a new PA 529 Guaranteed Savings Plan (GSP) account between May 28 and May 31, 2021, and establish an automatic contribution – such as a payroll deduction or a regular electronic bank transfer. Complete rules are available on the PA 529 website.

This promotion is in addition to the $100 deposit that Treasury provides through its Keystone Scholars program to every child born to a PA resident on or after January 1, 2019, for their post-secondary education.

The PA 529 College and Career Savings Program offers two plans to help families save, the GSP and the PA 529 Investment Plan (IP). Both plans offer generous tax and other benefits, including:

• Contributions are deductible from Pennsylvania state income tax (up to $15,000 per beneficiary for individuals; $30,000 per beneficiary for married couples filing jointly).
• Contributions grow free of state and federal taxes.
• Withdrawals for qualified education expenses are not taxed.
• PA 529 assets are exempt from Pennsylvania inheritance tax.
• PA 529 assets do not impact Pennsylvania state financial eligibility. Assets in other 529 programs could impact this.

 

The GSP helps families save for future education expenses at today’s plan rates. Returns are based on college tuition inflation, and families can choose the tuition level they wish to save at – from community college to the Ivy League.

 

The IP offers families multiple investment options through Vanguard. It recently became one of the first plans in the country to implement target enrollment date portfolios. This new strategy offers more flexibility for students of different ages and educational objectives, and automatically rebalances portfolios more frequently, helping families better achieve their savings goals. IP returns are based on market performance. The IP also received a Morningstar Silver RatingTM, one of only 14 plans nationwide to receive a Silver or Gold rating in the investment research firm’s Top 529 Colleges Savings Plans for 2020.

“Saving with a PA 529 account isn’t limited to a four-year degree. PA 529 accounts are also the perfect tool to help families pay for technical certificates, career training and apprenticeships.”

Pennsylvania State Treasurer, Stacy Garrity

PA 529 accounts can be used to pay for tuition, mandatory fees, supplies and equipment, and some room and board at schools nationwide. PA 529 accounts can also be used to help save for K-12 education, or to pay back certain student loans.

 

Families have paid for more than $4.5 billion in education expenses by using PA 529 accounts since the program was created in 1993.

 

To learn more about how to open or contribute to a PA 529 account, visit pa529.com or call (800) 440-4000. For information on all Treasury programs, visit patreasury.gov.