Investment Plan



How the PA 529 IP Works

The PA 529 Investment Plan helps families save for education in a way that meets their needs and budget.

You control your PA 529 IP account, selecting from investment options from Vanguard, one of America's largest financial service companies. Options range from conservative to balanced to aggressive in their investment approaches, including target enrollment date investment portfolios which automatically and gradually shift from equities to bonds gets closer. How you invest is up to you.

Your return is based on the performance of the underlying funds, which include stocks, bonds and other investments, depending on the options you choose. Due to market conditions, your return could be higher or lower than the rate of tuition inflation.


PA 529 Investment Plan Rating Upgraded by MorningstarTM in 2020 to Silver and Considered “Best in Class” Plan.1

The PA 529 Investment Plan (IP) has received, for the first time in its history, a Morningstar Silver RatingTM in its review of Top 529 College Savings Plans for 2020. As one of only 14 plans nationwide to earn Silver or Gold, the rating puts the PA 529 IP among an elite group of 35 “Best in Class” plans rated by MorningstarTM.

The PA 529 IP is one of only three plans that experienced an upgrade from neutral to silver in just two years.

Morningstar rates 529 plans based on four key pillars: Process, People, Parents, and Price. According to Morningstar’s analysis, the PA 529 IP’s rating was upgraded to a Morningstar Silver RatingTM based on shrewd design, diligent stewardship, and compelling fees. MorningstarTM also highlighted some of PA 529’s unique benefits, including a rewards program and the Keystone Scholars program, which provides a $100 starter deposit to a PA 529 account for every baby born to a Pennsylvania family starting in 2019.


1 ©2020 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.


Features & Benefits

Easy to set up. Anyone can open a PA 529 IP account and set up automatic contributions from bank or paycheck to make saving even easier.

Use your account at most schools. You can use your PA 529 to pay for most higher education expenses at many colleges, universities and community colleges, as well as graduate, career and technical schools in the U.S. and abroad. You can also use your PA 529 at elementary or secondary public, private, or religious schools. You can also use a PA 529 account for certain expenses associated with a registered and certified apprenticeship program. Visit fafsa.ed.gov to see eligible post-secondary schools and visit apprenticeship.gov.

Pay for more than just tuition. Qualified higher education expenses include tuition, certain room and board costs, required books and supplies, fees and special needs services, as well as principle and interest on a qualified education loan for a PA 529 beneficiary or sibling.* For students in K-12 schools, you can use your PA 529 IP account to pay for tuition. See Qualified K-12 Education Expenses and Qualified Higher Education Expenses, below.

*Note – Only expenses for fees, books, supplies, and equipment required for the participation of a designated beneficiary in a registered and certified apprenticeship program are considered qualified higher education expenses.


Qualified K-12 Education Expenses

As defined by the Internal Revenue Code, qualified K-12 education expenses include tuition up to $10,000 at elementary or secondary public, private, or religious schools.


Qualified Higher Education Expenses

As defined by the Internal Revenue Code, qualified higher education expenses include tuition, room and board (with certain limitations), required books, required supplies, required equipment, including computers, mandatory fees and special needs services, as well as principle and interest on a qualified education loan for a PA 529 beneficiary or sibling.*

*Note – Only expenses for fees, books, supplies, and equipment required for the participation of a designated beneficiary in a registered and certified apprenticeship program are considered qualified higher education expenses.


Access your account. Manage your account securely online anytime or call the PA 529 IP to speak to a savings specialist at 1-800-440-4000. You can change beneficiaries, permissions and investment choices any time.

No residency restrictions. Any U.S. legal resident 18 and older can open a PA 529 IP account.

Anyone can contribute. Parents, grandparents, aunts, uncles and family friends can all help cover the cost of your child's education.

It's affordable. The PA 529 IP has low fees that vary by investment option.


Individual Options

Build your own education savings plan

In addition to a target enrollment portfolio, you can choose among 14 individual portfolios that allow you to customize and manage your own education savings program.

Unlike the target enrollment portfolios, the balance of stocks and bonds will remain fixed until you make a change. As your beneficiary nears college age, you may choose to adjust your investments based on your goals and objectives.

Federal law allows you to transfer assets already in your account between investment options twice per calendar year. You can change the investment direction of future contributions at any time.

The PA 529 Investment Plan offers a number of investment options managed by The Vanguard Group: a target enrollment date option and 14 individual funds, including a socially responsible equity portfolio. For more information, read the PA 529 IP Disclosure Statement.


READYSAVETM 529 App

PA 529 Investment Plan accounts are accessible using the READYSAVETM 529 app from Ascensus College Savings, the IP's record-keeper.

PA 529 Account Owners can view their account balance, transaction history, and investment allocations. You can also make one-time contributions or recurring transactions, plus invite family and friends to give a gift.

Download from the Apple or Google Play app stores today.


google play store apple store


Target Enrollment Option

The PA 529 Investment Plan’s Target Enrollment Date Investment Portfolios are available in two-year increments. Families are able to select an asset allocation that most closely matches their beneficiary’s projected enrollment date.

Easy To Invest

By allowing families to invest in a portfolio based on the year their child will enroll in school, it helps take the guesswork out of investing. This new and simple one-step investment option will help reduce investor uncertainty when it comes to selecting a portfolio.

Flexible For All Students

The PA 529 IP Target Enrollment Date Investment Option can be used for saving for K-12 education, graduate school, or an apprenticeship. You may select from more than one Enrollment Date Portfolio within the same account for the same student.

Smaller, More Frequent Asset Allocation Adjustments

The Target Enrollment Date Investment Option provides more frequent rebalancing which can reduce the risk that often comes along with fewer, larger adjustments, and help keep families’ savings goals on track.


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