Free enrollment is now available for a limited time.
READING, Dec. 23, 2011—State Sen. Judy Schwank today said families who open or contribute to a Pennsylvania 529 College Savings account before Dec. 31 will be able to enroll for free and reduce their 2011 Pennsylvania state taxable income.
“It is never too early or too late to start saving for college, especially as tuition costs continue to rise over the years,” Schwank said. “Families who contribute before Dec. 31 will be able to reap valuable tax benefits, as well as contribute to their children’s higher education.”
Taxpayers can deduct up to $13,000 per beneficiary in PA 529 contributions from Pennsylvania taxable income on their state tax returns for 2011. Married couples filing jointly can deduct up to $26,000 per beneficiary if each spouse has taxable income of at least the amount deducted. Additionally, family and friends can contribute up to $65,000 in a single year ($130,000 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to yearly taxes as they grow, and when used for qualified higher education expenses, earnings are tax-exempt when withdrawn.
PA 529 College Savings Program is offering free enrollment – a $50 savings – for all new PA 529 Guaranteed Savings Plan (GSP) accounts opened before Dec. 31 at www.PA529.com. Use code “StartToday” when prompted. There is no enrollment fee for the PA 529 Investment Plan (IP).
“During this holiday season, there is no better gift to give a child than a gift of an education, especially during this free enrollment period,” Schwank said. “Make a resolution for 2012 to start saving for college right now.”
To open or contribute to an account, visit www.PA529.com or call 1-800-440-4000.
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