Treasurer McCord: Kids Grow Up Fast, But Tuition Grows Faster; Keep Pace With PA 529 Guaranteed Savings Plan
Contribute by August 31 to take advantage of lower rates; New accounts save $50
Harrisburg – Pennsylvania families concerned with the rising cost of higher education have a tax-smart way to keep pace with tuition increases, according to State Treasurer Rob McCord – the Pennsylvania 529 Guaranteed Savings Plan (GSP). Treasurer McCord today urged parents to open a PA 529 GSP account – or contribute to an existing account – before August 31 to take advantage of last school year’s lower prices.
Credit rates will increase September 1 to correspond with the tuition increases set by colleges and universities.
“We prepare our kids for the start of a new school year, but we must not forget to prepare financially for their future higher education,” Treasurer McCord said. “After all, kids grow up fast, but college tuition often grows faster. Treasury offers the Pennsylvania 529 Guaranteed Savings Plan, which helps families keep pace with these rising costs.”
Treasurer McCord said families can get more “bang for their buck” by contributing to their PA 529 GSP accounts before the rate increase.
In order to take advantage of lower credit rates, contributions sent by mail must be postmarked on or before August 31. Online contributions must be made by 10 p.m. EST on August 31 at www.pa529.com.
To help more families save for higher education, the McCord Treasury is offering free enrollment – a $50 savings – for all new PA 529 GSP accounts opened online during August and September at www.pa529.com. Use code SAVE50 when prompted.
The PA 529 GSP is designed to help savings grow to meet the future cost of education. When used for qualified higher education expenses, PA 529 GSP contributions grow at the rate of tuition inflation (subject to fees and premiums). For example, if you save enough for one semester today, you will have enough for one semester in the future no matter when or how much tuition has increased in the meantime. Families saving through the PA 529 GSP receive tax-deferred growth on earnings and tax-free withdrawals when funds are used for qualified educational expenses.
Pennsylvania also offers a second 529 plan, the PA 529 Investment Plan, in which returns are based on financial market performance. The PA 529 Investment Plan features low fees and more than a dozen conservative and aggressive investment options from Vanguard, one of the nation’s largest financial services companies. Families saving in the PA 529 Investment Plan also receive the same great tax advantages as those saving with the PA 529 GSP.
For more information, visit www.pa529.com or call 1-800-440-4000 to make a contribution.
Media contact: Carrie Fischer Lepore, 717-772-2416 or news@patreasury.org
###
Guaranteed Savings Plan
The guarantee of the PA 529 GSP is an obligation of the GSP Fund, not the Commonwealth of Pennsylvania or any state agency. Before investing, please carefully read the GSP Disclosure Statement (available at www.PA529.com or by calling 1-800-440-4000) to learn more about the plan including limitations of the guarantee, risks, fees, premiums, and tax implications of the GSP.
Investment Plan
Before investing, please carefully read the IP Disclosure Statement (available at www.PA529.com or by calling 1-800-440-4000) to learn more about the plan including investment objectives, risks, fees, and tax implications of the IP.
Investment returns are not guaranteed, and you could lose money by investing in the Investment Plan.
Tags: