Lehigh Times

Every May 29, 529 Day is celebrated in Pennsylvania. The PA 529 Guaranteed Savings Plan (GSP) — one of two offered by the PA 529 College and Career Savings Program — has been helping families save up for postsecondary education for three decades.

This week, Pennsylvania Treasurer Stacy Garrity announced that the Treasury Department will be celebrating 529 Day all month in an effort to increase education savings through the PA 529 College and Savings Program.

Pennsylvania residents who open a PA 529 GSP this month will be eligible to win $5,290 to be put into their account, a news release from the Treasury Department said this week. There will also be 67 awards of $529 each, one in each county of the state. Only newly opened PA 529 GSP accounts will be eligible for the awards. Official rules can be found at pa529.com/529day.

“I’m excited to offer this great incentive to motivate more families to start saving,” Pennsylvania State Treasurer Stacy Garrity said in the release. “It’s never too early or too late to start saving for your child’s future education. By including 67 county-specific awards, we’re ensuring that the impact is felt all across Pennsylvania. With PA 529, families enjoy big tax benefits while helping their child follow their dreams. Offering these awards will give their savings a big jumpstart.”

The PA 529 account funds have plenty of uses; including paying for tuition, fees, books, equipment; as well as room and board at technical schools, apprenticeship programs, community colleges and four-year colleges across the country.

The account earnings are based on college tuition inflation rates, and there a number of different tuition levels available for families to choose — from community colleges all the way up to Ivy League schools. Credits saved at the current rate will cover future tuition credits regardless of when the child pursues postsecondary education.

The program provides for excellent tax benefits as well. This includes up to $16,000 per beneficiary each year ($32,000 for married couples) in state income tax deductions on contributions, as well as tax-free growth on federal and state income taxes, tax-free withdrawals for certain eligible expenses, and inheritance and gift tax benefits. The program also does not affect state financial aid eligibility.

More information can be found at pa529.com.