Tomlinson Urges Parents to Save on Taxes by Investing In College Savings Plan

Looking for a truly meaningful gift for the special child on your holiday shopping list?  Senator Tommy Tomlinson (R-Bucks) urges Pennsylvanians to consider opening or contributing to a Pennsylvania 529 College Savings Program account this holiday season. Plus, contributions made by December 31 help to reduce 2013 Pennsylvania state taxable income — one of the many generous tax benefits that are available to those who are saving for college via the PA 529 College Savings Program.

“Give the gift of education this holiday season and save on your taxes next spring” Tomlinson] said. “Don’t delay; act before December 31 to reap valuable tax benefits. Visit www.PA529.com to learn more.”

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. Additionally, family and friends can contribute up to $70,000 in a single year ($140,000 for a married couple filing jointly) for each beneficiary without incurring federal gift tax consequences (assumes no other gifts in the next four years).

Plus, 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to yearly taxes as they grow, and when used for qualified higher education expenses, earnings are tax-exempt when withdrawn.

To encourage more families to save for college in a tax-advantaged way, 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 December 31 at www.PA529.com. Use code TAX2013 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 a semester at one of Pennsylvania’s State System of Higher Education universities today, you will have enough for a semester there in the future – no matter when or how much tuition has gone up in the meantime.

Pennsylvania also offers a second option, the PA 529 Investment Plan (IP), in which returns are based on financial market performance. The PA 529 IP features low fees and more than a dozen conservative and aggressive investment options from The Vanguard Group, one of the nation’s largest financial services companies. There is no enrollment fee for the PA 529 IP.

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

The Pennsylvania 529 College Savings Program sponsors two plans – the PA 529 Guaranteed Savings Plan (GSP) and the PA 529 Investment Plan (IP). The guarantee of the PA 529 Guaranteed Savings Plan is an obligation of the GSP Fund, not the Commonwealth of Pennsylvania or any state agency. Before investing in either plan, please carefully read that plan’s disclosure statement (available at www.PA529.com or by calling 1-800-440-4000) to learn more about that plan, including investment objectives, risks, fees, and tax implications.

Contact:

Fran Cleaver
(717)787-5072