529 Day


This 529 Day, we’re providing $100 to the first 529 new PA 529 Guaranteed Savings Plan accounts opened between May 28 and May 31 with automatic contributions from your bank account or payroll deduction. Conditions apply. Read the official rules for additional details.


What is a 529 Plan?

529 plans help families save for education. The name "529" refers to Section 529 of the IRS tax code, which gives these plans special tax breaks to encourage saving.

There's no doubt your children or grandchildren will benefit from education. Studies show that a college degree is worth nearly a million dollars in lifetime earnings. Saving for education is an investment in their future.

Two ways to save. The Pennsylvania 529 College and Career Savings Program offers two savings plans. The PA 529 Guaranteed Savings Plan (GSP) is a lower-risk plan that helps your savings keep pace with rising higher education tuition. The PA 529 Investment Plan (IP) lets you choose from several investment options from The Vanguard Group. Compare plans.

Easy to set up and easy to use. You can use a 529 plan to pay for qualified higher education expenses at most colleges and universities, and many technical and career schools as well as certain expenses for a registered apprenticeship program. You may also use the money to pay for tuition expenses up to $10,000 at elementary or secondary public, private, or religious schools. You may also use your PA 529 account for repayment of principle and interest on a qualified education loan for a PA 529 beneficiary or sibling not to exceed $10,000. There are no income limits, and anyone can contribute. Grandparents, aunts, uncles and family friends can all help your student pay for education.


Tax Advantages

State tax deduction. You can deduct your contributions from your Pennsylvania taxable income up to $15,000 per beneficiary, per year. Married couples can deduct up to $30,000 per beneficiary, per year, provided each spouse has taxable income of at least $15,000.

Tax-deferred growth. Your contributions grow free of federal and Pennsylvania income taxes while they remain in the account.

Tax-free withdrawals. When used for qualified expenses, you pay no income tax on the growth in your account.*

Gift and inheritance tax benefits. Section 529 plans also provide unique gift and inheritance tax benefits, including a special provision for gifts larger than the normal limit. And unlike other gifts, the account owner retains complete control over the contributions. Learn more about these tax advantages on the plan page.

*The availability of tax or other benefits may be contingent on meeting other requirements. A withdrawal or portion of a withdrawal, not used for qualified expenses may be subject to state and local income taxes. The earnings portion of the withdrawal will be subject to federal income tax and, with a few exceptions, an additional 10% federal income tax penalty.


Why Choose a Pennsylvania 529?

As a Pennsylvania resident, you get special treatment. Not only are your contributions deductible from your Pennsylvania state income tax, the entire value of your account is exempt from Pennsylvania inheritance tax.* Assets held in a PA 529 plan are not counted when determining state financial aid for college. Assets in any other state 529 plan are counted. PA 529 assets are also protected from creditors in Pennsylvania. Assets in out-of-state plans are not protected.

Plus, Pennsylvanians can now send state tax refunds directly to a PA 529 College and Career Savings account. You can contribute all or part of your Pennsylvania state income tax refund directly to an existing PA 529 College and Career Savings Program account. All or a portion of a refund can be sent to one or multiple accounts.

The process is simple. When completing your PA-40, Personal Income Tax Return, enter code H and the amount in the donation section between lines 32-36. Additionally, submit a PA-Schedule P with your return when donating to one or more Pennsylvania 529 College and Career Savings Program accounts. More information is available in the PA-40, Personal Income Tax Return Instructions. Visit Revenue.pa.gov to learn more.

Another unique benefit to PA 529 plans is the SAGE Scholars Tuition Rewards program, which offers tuition discounts to 300+ private colleges nationwide, including over 50 in Pennsylvania. One more great way to stretch your savings with a Pennsylvania 529 College and Career Savings Plan.

*The availability of tax or other benefits may be contingent on meeting other requirements. A withdrawal or portion of a withdrawal, not used for qualified expenses may be subject to state and local income taxes. The earnings portion of the withdrawal will be subject to federal income tax and, with a few exceptions, an additional 10% federal income tax penalty.


Pick the Plan that Works for You

Saving for education is an important investment that will pay huge dividends throughout your child's life. But first, you need to figure out how. Many financial experts agree that 529 plans are the best option for most families.

The Pennsylvania 529 College and Career Savings Program offers two ways to save:

PA 529 Guaranteed Savings Plan (GSP) – A simple, lower-risk way to help keep pace with rising post-secondary tuition costs. Save at today's lower GSP credit rates. For example, if you save enough for a semester at one of the state universities today, you'll have enough for a semester at that school in the future – no matter when or how much post-secondary tuition has gone up in the meantime. The PA GSP offers five average post-secondary tuition levels to select from, and growth is based on post-secondary tuition inflation.

PA 529 Investment Plan (IP) – Returns on contributions are based on investment performance of your choice of investment options ranging from aggressive to conservative, including target enrollment date investment portfolios, which offer more frequent and gradual shifts from equities to bonds as the student’s target enrollment date approaches.



Enroll Today!

Enrollment Checklist

When setting up your PA 529 plan, please have the following information ready:

  • You: Address, birth date, Social Security number*
  • Your Bank (to make contributions from a checking or savings account): Your account number, routing number for your bank, and/or a "voided" blank check
  • Your Successor (optional, in case of incapacity or death): Birth date
  • Beneficiary (person for whom you're saving): Birth date, Social Security number*

PA 529 IP Plan only:

For UGMA or UTMA accounts, please use this form for the PA 529 GSP and this form for the PA 529 IP.

*We are required by federal law to obtain, verify, and record information that identifies each person who opens an account. If you don't provide the requested information, we may not be able to open your account. If we are unable to verify your identity, PA 529 reserves the right to close your account and return any contributions or take other steps we deem reasonable.


PA Savings Pledge

A savings account in your child’s name can build hope and make future dreams a reality. Research shows that a child with education savings is three times more likely to enroll in a two- or four-year college and four times more likely to graduate.1

Most people want to save for their children’s future, but actually following through and doing it can be difficult. That’s why Pennsylvania Treasury has partnered with Fund My Future to create the PA Savings Pledge and offer you several incentives to save. If you are a Pennsylvania resident, simply tell us who you are saving for and how much you will save each month, then follow through on your pledge to save, and you will be eligible to win monthly prizes. More than $5,000 in prizes is up for grabs every month. Additionally, if your child was born after 12/31/2018, you may be eligible for the Keystone Scholars $100 starter deposit.

Fund My Future logo
Keystone Scholars Logo
PA 529 logo

Fund My Future (FMF), a program administered by Propel Schools Foundation, offers reminders as well as financial and other incentives designed to encourage families to open a savings account in their child’s name and save for their future education. Employees of the Pennsylvania Treasury Department and their immediate families (parents, siblings, children, and spouse) and household members of each, whether related or not, are not eligible to participate.

Participation in FMF is optional and separate from the Pennsylvania 529 College and Career Savings Program (PA 529) and Keystone Scholars and is not affiliated with the Commonwealth of Pennsylvania or the Pennsylvania Treasury Department. By participating in FMF, you are agreeing to allow the Pennsylvania Treasury Department to share with FMF certain information related to your PA 529 account for verification purposes, including but not limited to the fact that you own a PA 529 account and the amount and frequency of contributions. If you agree to receive emails and text messages when registering for FMF, message and data rates may apply. Please visit fundmyfuturepa.org and read the PA 529 GSP/IP Disclosure Statements at pa529.com for more information.

1 Elliott, W., Song, H-a, & Nam, I. (2013). Small-dollar children's saving accounts and children's college outcomes by income level. Children and Youth Services Review, 35 (2013), p. 560-571.

Connect With Us

Phone: 800-440-4000
Email: PA529@patreasury.gov

 

PA 529 College and Career Savings Program
613 North Drive | Room G-06
Harrisburg, PA 17120