Pennsylvania Treasury Department is celebrating 529 Day throughout the month of May with a promotion that could put more than $40,000 into new PA 529 College and Career Savings Program accounts to boost education savings.
Pennsylvanians who open a new PA 529 Guaranteed Savings Plan (GSP) account in May will be automatically eligible to win a top award of $5,290 for their PA 529 GSP account, or one of 67 county-specific awards of $529 in PA 529 GSP account contributions. Only those with newly opened PA 529 GSP accounts will be eligible for awards, and official rules are available online at pa529.com/529day.
“I’m excited to offer this great incentive to motivate more families to start saving,” said PA Treasurer Stacy Garrity. “It’s never too early or too late to start saving for your child’s future education. By including 67 county-specific awards, we’re ensuring that the impact is felt all across Pennsylvania. With PA 529, families enjoy big tax benefits while helping their child follow their dreams. Offering these awards will give their savings a big jumpstart.”
529 Day, celebrated every May 29, highlights the benefits of saving for postsecondary education with a 529 account – and Pennsylvania’s PA 529 accounts are among the most highly-rated in the nation.
The PA 529 GSP is one of two savings plans offered by the PA 529 College and Career Savings Program. PA 529 plans have been helping families save and pay for postsecondary education for 30 years.
PA 529 GSP account earnings are based on college tuition inflation rates. Families can select from a variety of tuition levels from community colleges to Ivy League universities. Each credit saved at today’s rates will cover a credit of tuition at tomorrow’s prices – whether a child pursues postsecondary education in a few years, or in 18 years.
Saving with a PA 529 GSP account provides great tax benefits including state income tax deductions on contributions (up to $16,000 per beneficiary per year, $32,000 for married couples); tax-free growth on federal and Pennsylvania state income taxes; tax-free withdrawals for qualified expenses; and gift and inheritance tax benefits. Another advantage for PA 529 accounts is that assets do not affect eligibility for Pennsylvania state financial aid.
PA 529 accounts can be used to pay for tuition, fees, books, equipment and room and board at technical schools, apprenticeship programs, community colleges, and four-year colleges nationwide.