Tax Advantages, Savings Boost for 529 Contributions, Brewster Says

Harrisburg – Dec. 17, 2014 – To better manage the cost of higher education and cut tax liability this year, state Sen. Jim Brewster (D-Allegheny/Westmoreland) today reminded students and parents that contributions to an approved college savings plan by Dec. 31 are tax deductable.

pa529“The high cost of a college education is a real challenge for students and parents,” Brewster said.  “A 529 plan helps families manage costs and provides a means to reduce tax obligations.”

Brewster noted that state Treasurer Rob McCord’s office is offering free enrollment in the PA Guaranteed Savings Plan and the PA 529 Investment Plan.

“There are a great many resources available to help students, parents and families deal with the high cost of college,” Brewster said.  “Establishing a PA 529 plan and making contributions is an excellent way for families to both save for college and lower tax bills at the same time.”

The treasurer reported that there are now nearly 200,000 accounts with more than $3.3 billion in assets that are being managed by his office.

Taxpayers can deduct up to $14,000 per beneficiary in PA 529 contributions from Pennsylvania taxable income on their state tax returns for 2014. Married couples filing jointly can deduct up to $28,000 per beneficiary if each spouse has taxable income of at least the amount deducted.

The PA 529 College Savings Program is offering free enrollment ($50 savings) for all new PA 529 Guaranteed Savings Plan (GSP) accounts opened by Dec. 31.

Brewster said that if students, parents, guardians or others need more information or want to enroll, they can visit www.PA529.com. To take advantage of the $50 savings, use enrollment code Brewster when prompted.

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Brewster: Consider Opening PA529 College Savings Plan to Aid Students

Harrisburg, August 29, 2014 – State Sen. Jim Brewster today said that opening a PA529 College Savings Plan can help students offset the rising cost of college debt.

The program is offered through the state Treasury.

“It is important that parents understand what is available to them to help manage the cost of a college education for their children,” Brewster (D-Allegheny/Westmoreland) said.

He noted that the U.S. student debt is now more than $1 trillion so parents should consider opening or contributing to a Pennsylvania 529 Guaranteed Savings Plan (GSP) before August 31 to take advantage of last school year’s lower credit rates. Credit rates typically increase on September 1.

The PA 529 GSP is offering free enrollment – a $50 savings – for all new accounts opened before September 30, Brewster noted.  Families will have a chance to win one of five $529 college savings accounts by registering at PA529.com by September 30.

To open or contribute to an account, visit www.PA529.com or call 1-800-440-4000.

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Contribute to 529 College Savings Plan Before Dec. 31 for State Tax Benefits

Harrisburg, Dec. 13, 2013 – State Sen. Jim Brewster (D-Allegheny/Westmoreland) urged Pennsylvanians to open or contribute to a 529 College Savings Program account on the behalf of a child in their lives.  He said contributions made by Dec. 31 will reduce a person’s 2013 Pennsylvania state taxable income.

“This is a simple way to save money for a child’s college education while taking advantage of tax benefits on your 2013 state taxes,” Brewster said. “Consider giving a 529 plan contribution as a holiday gift before Dec. 31.”

Taxpayers can deduct up to $14,000 per beneficiary in PA 529 contributions from Pennsylvania taxable income on their state tax returns for 2013. Married couples filing jointly can deduct up to $28,000 per beneficiary if each spouse has taxable income of at least the amount deducted.

“In addition to reducing your taxable income, earnings in a 529 plan are not subject to yearly taxes as they grow, and when used for qualified higher education expenses, earnings are tax-exempt when withdrawn,” said Brewster. “Hopefully these tax benefits encourage families to plan ahead for their children’s futures.”

Brewster also said the PA 529 College Savings Program is offering free enrollment – a $50 savings – for all new PA 529 Guaranteed Savings Plan (GSP) accounts opened by Dec. 31 at www.PA529.com. Use code TAX2013 when prompted.

To open or contribute to an account, visit www.PA529.com or call 1-800-440-4000.

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