Why Get a PA 529 Plan?

PA 529 accounts are designed for higher education and career savings so you can:

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Prepare for rising costs of college and career education

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Earn tax-free growth

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Reduce future borrowing

What Can You Do With a PA 529 Plan?

A PA 529 plan puts postsecondary education within reach while offering flexibility for whatever your child's future holds.

  • Use funds at any qualified educational institution, from K-12 to college to career training programs.
  • Save toward tuition, room and board, books, and more.
  • Easily contribute from your bank account or paycheck.
  • Get special tax benefits available only with a PA 529 plan for education.
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Why Choose PA 529?

Benefits for PA Residents

Pennsylvania residents get a state income tax deduction, protection from PA financial aid reporting, and more.

Keystone Scholars

PA babies born after December 31, 2018 recieve a $100 education investment through Keystone Scholars.

Tuition Discounts

Make private colleges more affordable with the SAGE Scholars Tuition Rewards (SAGE) program. SAGE is a free scholarship program that helps families reduce the cost of undergraduate tuition at nearly 450 private colleges nationwide, including 55 in Pennsylvania. See our FAQs for details.

PA 529 Accounts Offer Tax Advantages Over Other Types of Savings Accounts Including:

  • State tax deduction. Deduct contributions from your PA state income taxes.
  • Tax-deferred growth. 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. PA 529 plans also provide unique gift and inheritance tax benefits, including a special provision for gifts larger than the normal limit.
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