Pennsylvania Treasurer Stacy Garrity announced that Pennsylvanians saving with the PA 529 College and Career Savings Program and PA ABLE Savings Program can now contribute to their accounts using digital gift cards purchased with cryptocurrency, making Pennsylvania the first state to provide this type of modernization for a state-administered education savings program.
“I am incredibly proud that Pennsylvania is the first state in the nation to partner with Gift of College and Bead to offer PA 529 and PA ABLE savers the opportunity to use cryptocurrency to help them reach their financial goals,” said Treasurer Garrity. “By expanding the way people can chose to save, we are making our programs more accessible and more flexible than ever before – it’s an honor to lead the way in innovative solutions for Pennsylvania families.”
Treasury partners with Gift of College to offer gift card options that are redeemable by PA 529 and PA ABLE account owners. Through the Gift of College platform, cryptocurrency and digital assets can be used to purchase digital gift cards using Bead – a digital payments network that enables businesses to accept digital assets and digital wallets while seamlessly receiving U.S. dollars.
With the help of Bead and Gift of College, parents, grandparents, friends and family can use digital and traditional currency to fund future education and disability related expenses for someone in their life. Gift contributions may be deducted from gift givers’ Pennsylvania state income tax returns.
“We are truly honored to support Treasurer Garrity and her forward-thinking vision for Pennsylvania families,” said Jay Sykes, CEO of Bead. “Making it possible to contribute to a child’s future using digital assets is exactly the kind of innovation that puts Pennsylvania ahead of the rest of the country — and we are proud to be the infrastructure making it happen.”
“We are thrilled to help the Commonwealth lead the way in providing Pennsylvania families with even more ways to support their education and disability savings goals,” said Wayne Weber, Gift of College CEO.
PA 529 has helped families steadily and strategically save in a tax-advantaged way for a wide variety of qualifying technical, collegiate, apprenticeship, credential and K-12 educational expenses for over 30 years. Assets in PA 529 accounts do not impact eligibility for Pennsylvania state financial aid.
There are two plans to choose from, the PA 529 Guaranteed Savings Plan (GSP) and the PA 529 Investment Plan (IP). The PA 529 GSP lets families save at today’s tuition rates to cover tomorrow’s tuition costs. The Morningstar Gold-Rated PA 529 IP has multiple investment options to choose from and returns tied to financial markets.
PA ABLE (Achieving a Better Life Experience) accounts help Pennsylvanians living with disabilities, and their families, save tax-free for a wide range of disability related expenses without impacting eligibility for important benefits.
