Harrisburg, PA - The tax benefits for contributing to PA 529 and PA ABLE accounts are getting better in 2023, Treasurer Stacy Garrity announced today. Higher Pennsylvania state personal income tax deductions are now in place for both programs.
PA 529 account owners may deduct up to $17,000 (previously $16,000) of contributions to their accounts, or $34,000 (previously $32,000) for couples filing jointly, provided both spouses have at least $17,000 of income. The PA state income tax deduction for 529 contributions is available to any PA taxpayer, making gift contributions an attractive benefit for family members or friends.
PA ABLE account owners will also be able to deduct up to $17,000 (previously $16,000) for contributions to their accounts.
“Both PA 529 and PA ABLE accounts have excellent tax advantages, and the higher deduction limits will help bolster savings for account owners. Treasury’s savings programs are valuable tools that help Pennsylvania families meet their financial goals. If anyone is thinking about starting to save with PA 529 or PA ABLE accounts, I encourage them to visit Treasury’s website to learn how these accounts can have a big impact on improving financial security and wellness.”
Pennsylvania State Treasurer, Stacy Garrity
The PA 529 College and Career Savings Program is designed to help PA families steadily and strategically save for future educational expenses. Treasury offers two plans; the PA 529 Guaranteed Savings Plan (GSP), which allows you to save at today’s tuition rates to meet tomorrow’s tuition costs, and the PA 529 Investment Plan (IP), which offers a number of investment options. PA 529 plans have significant state and federal tax advantages and can be used for a wide variety of qualifying technical, collegiate, apprenticeship and K-12 educational expenses.
The PA ABLE Savings Program is a tax-free way for Pennsylvanians to save for a wide range of disability-related expenses while maintaining government disability benefits. PA ABLE provides various savings options including an interest-bearing checking account and investment portfolios. The contribution limit for PA ABLE accounts in 2023 is $17,000.
PA ABLE is the largest program in the 18-member National ABLE Alliance, accounting for nearly 25% of total assets, and one of the largest ABLE programs in the country. Treasurer Garrity was elected the inaugural chair of the new ABLE Savings Plan Network in November 2022.