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.

-30-

 

 

Brewster: Families Can Save Money by Opening a College Savings Account this Month

McKeesport, September 11, 2012 – State Sen. Jim Brewster today said families can save $50 by enrolling online in the college savings program operated by the state treasurer’s office this month.

“Through the end of September, the PA 529 GSP plan is offering free enrollment for those who open a new account online this month — saving families the $50 enrollment fee,” Brewster said. “The program is a good way to help families afford the cost of a college education.”

To open or contribute to an account, visit www.PA529.com or call 1-800-440-4000. Constituents may use the code “Brewster” when they enroll online in the PA 529 GSP to waive the $50 enrollment fee.

Have questions about saving for college?
Get answers from Treasury experts.

Monday, October 22, 2012 – 7:00pm – 7:30pm
https://www3.gotomeeting.com/register/381997054

ednesday, October 24, 2012 – 12:00pm – 12:30pm
https://www3.gotomeeting.com/register/482298286

Sign up for a free webinar.

— Learn about the tax benefits of 529 plans.
— Find out how your savings affect financial aid.
— Get tips on how to set savings goals.
— Have your questions answered by program experts.

The contributions made to PA 529 plans are tax deductible and when they are used for qualified education expenses are state and federal tax exempt.

“The PA 529 plan is a key financial tool that helps families plan ahead and manage college costs,” Brewster said. “It is worth adding that grandparents and friends can also contribute to a student’s education.”

Brewster, a longtime advocate of higher education funding, said investing in a PA 529 account is smart and forward-thinking. PA 529 contributions grow at the rate of tuition inflation. He said that if a family saves enough for a semester at a state system university today, there will be enough to pay for another semester at the school in the future – regardless of tuition increases in the future.

# # #