Eligible PA 529 GSP accounts will receive a $100 deposit to boost savings

0

HARRISBURG — Holders of qualifying PA 529 Guaranteed Savings Plan (GSP) accounts will receive a $100 deposit made to their accounts. Additionally, asset-based fees for all PA 529 GSP account holders will be waived for the fiscal year beginning July 1.

Pennsylvania Treasurer Stacy Garrity made the announcement earlier this week, saying deposit and fee waivers are funded by PA 529 GSP surpluses.

“The PA 529 GSP is a great way to offset the effects of inflation,” Garrity said in a statement. “Any family looking to make post-secondary education more affordable should consider the benefits of the PA 529 GSP. Offering participants this deposit and a year of asset-based fee waivers is one way to share the success of the plan with families. dedicated to saving for their child’s education.

To be eligible for the $100 deposit, a PA 529 GSP account must have a minimum of $100 in contributions as of June 30, 2022. Account earnings do not count toward the eligible $100, according to a press release announcing the initiative. .

“Investing in PA 529 GSP gives parents peace of mind,” Garrity said. “They know that as tuition fees go up, they’ve already locked in their child’s future education at today’s prices.”

According to the release, there are nearly 110,000 PA 529 GSP accounts with $2.2 billion saved for future post-secondary education expenses. Account earnings are based on tuition inflation rates, and families can select the tuition credit rate they want to save at, whether it’s community college or college. Ivy League University. Saving at today’s credit rate will cover the same credit in the future.

PA 529 accounts can be used to pay tuition, fees, books, equipment, and room and board at technical schools, apprenticeship programs, community colleges, and four-year colleges at national scale.

PA 529 plans have significant state and federal tax benefits and can be used for a wide variety of qualifying technical, college, learning, and K-12 education expenses. To learn more, visit pa529.com or call 800-440-4000.

Share.

About Author

Comments are closed.