- What are 529 college savings plans?
- What are the income tax benefits of investing in a PA 529 account?*
- What are the gift, estate and inheritance tax benefits of investing in a PA 529 account?*
- Will owning a PA 529 account affect the beneficiary's eligibility for financial aid?
- What benefits can I get by saving in the PA 529 Program that I can't get from any other 529 program?
- Who may contribute to a PA 529 account?
- How much can I contribute to the account?
- How do I send in money?
- How can I make regular, automatic contributions? (Payroll deduction & AIP)
- How do I roll over another 529 account into my PA 529 account?
- I have a UTMA/UGMA account. Can I roll over the funds into my child's PA 529 account?
- How often can I roll over my account?
- I have a 529 account in another state. What are the tax implications if I roll it over to a PA 529 account?
- Can I convert my Savings Bonds into tax-free college savings?
- How do I roll a Savings Bond into my PA 529 account as a tax-deferred event?
- How do I roll over a Coverdell ESA to a PA 529 account?
- What is the Pennsylvania 529 Guaranteed Savings Plan (GSP)?
- Who may open a PA 529 GSP account?
- Who can be a beneficiary of a PA 529 GSP account?
- How do I access my account to pay for qualified higher education expenses (qualified withdrawal)?
- When can I request payment for qualified higher education expenses?
- How do I obtain, complete and submit a Payment Authorization Form?
- What does it cost to open an account?
- What is the account maintenance fee?
- How much is the account maintenance fee?
- What if I am not a Pennsylvania resident?
- How do I enroll in the PA 529 GSP?
- Why do I need to choose a tuition level?
- How do I change my Tuition Level?
- Why is August 31 an important date for contributing to a PA 529 GSP account?
- What is the PA 529 Investment Plan (IP)?
- Who is Upromise Investments, Inc.?
- Who is Vanguard?
- How do I use my PA 529 IP Account?
- What are my investment choices?
- Are portfolio returns guaranteed?
- When can I change my investment options?
- If I'm invested in an age-based savings option, do I need to do anything as the beneficiary grows older?
- Can I see a list and description of the portfolios' underlying mutual funds?
- What if I'd like to allocate part of my investment to a portfolio not listed here?
- How is investment performance determined?
- How do I enroll in the Pennsylvania 529 IP?
- What are qualified education expenses?
- Do I have to use my savings at a Pennsylvania college or university?
- What are eligible educational institutions?
- Can I access my account for purposes other than paying for higher education (non-qualified withdrawals)?
- What happens if my child does not attend college?
- Who can access my account?
- When I send mail regarding my account, it goes to Massachusetts, not Pennsylvania. Wouldn't it be more direct to send it in-state?
Fact or Fiction?
FACT: More and more families rely on student loans to pay for college, and all loans represent debt that a family incurs. Any savings, even in small increments, that a family can put away will offset the amount of debt it must take on to pay for college.
FACT: A PA 529 account is not included in determining eligibility for Pennsylvania state financial aid programs. Savings held in other state's 529 plans do not receive this benefit.
For federal financial aid, funds saved in 529 plans are generally considered to be parental assets, which means that only about six percent of these assets are currently counted towards the family's expected contribution in federal need-based financial aid calculations.
FACT: A 529 plan may be used at any school that is accredited and eligible to accept federal financial aid. Nearly all colleges and universities, community colleges, and career or technical schools are eligible. To search for eligible schools, go to www.fafsa.ed.gov.
FACT: A 529 plan may be used at any eligible school, including two- and four-year colleges, graduate schools, and vocational and technical schools. Funds may be used for tuition, fees, and certain room and board costs.
FACT: 529 plans have much lower minimum contribution amounts than many other investments, making them accessible and convenient for families of any income level. Families can start a plan with as little as $15 per month.
FACT: There is no maximum age for a 529 plan. Assets may be used at eligible schools offering adult career training or advanced degrees, including part-time programs.
FACT: A 529 account holder can change the plan's beneficiary to another eligible member of the family, such as siblings or even oneself with no tax penalty. And, in the PA 529, you can always withdraw your money at any time for any reason. Investment gains or losses might apply, you may owe federal and state taxes, and you may incur federal tax penalties.
FACT: The federal law that gives 529 plans their federal tax advantages has no expiration date. A change would require new legislation to be enacted.
FACT: A PA 529 account can be opened online or by mail, and customer service representatives are available to answer any questions you may have. Additionally, a wealth of information is available online for families seeking more information about saving for college.
Source: Modified from the College Savings Plans Network’s Top 10 Myths about 529 Plans.