Is the PA 529 plan good?

Is the PA 529 plan good?

Pennsylvania’s 529 college savings plan ranks 2nd for the 1-year period ended June 30, 2019, according to Savingforcollege.com’s direct-sold 529 plan quarterly performance rankings.

How do I open a 529 account in PA?

When setting up your PA 529 plan, please have the following information ready:

  1. You: Address, birth date, Social Security number*
  2. Your Bank (to make contributions from a checking or savings account): Your account number, routing number for your bank, and/or a “voided” blank check.

Are 529 plans tax deductible in Pennsylvania?

The PA 529 College and Career Savings Program offers two plans to help families save, the GSP and the PA 529 Investment Plan (IP). Contributions are deductible from Pennsylvania state income tax (up to $15,000 per beneficiary for individuals; $30,000 per beneficiary for married couples filing jointly).

How much can you contribute to a PA 529?

The maximum contribution for all PA 529 savings accounts for the same beneficiary (student), regardless of who owns the accounts, is $511,758. Once their accrued PA 529 account balance reaches this limit, no additional contributions are allowed.

Can you use PA 529 to pay student loans?

Under the SECURE Act of 2019, plan holders can use 529 plans to pay for tuition and qualified expenses of apprenticeship programs and can withdraw a lifetime maximum of $10,000 to pay down student loan debt.

How much can you withdraw from a 529 plan per year?

Up to $10,000 annually per student, in aggregate from all 529 plans, can be withdrawn free from federal tax if used for tuition expenses at a public, private or religious elementary, middle, or high school.

What is the PA 529 plan?

What is the PA 529 Investment Plan (IP)? It’s a tax-advantaged 529 plan intended to help an individual or a family pay the costs of education. It is a program established by the Commonwealth of Pennsylvania and administered by the Treasury Department.

How do 529 plans work in Pennsylvania?

You can deduct your contributions from your Pennsylvania taxable income up to $16,000 per beneficiary, per year. Married couples can deduct up to $32,000 per beneficiary, per year, provided each spouse has taxable income of at least $16,000. Tax-deferred growth.

Can you use 529 money to buy a house?

Mortgage Payments Do Not Qualify as Room and Board Even if the student were to buy the home, they still can’t use 529 plan money to make the mortgage payments. A mortgage payment is a payment on a loan and not a payment of housing costs. As such, it is not a qualified higher education expense.

How much can I withdraw from a 529 plan per year?

$10,000 annually
Up to $10,000 annually per student, in aggregate from all 529 plans, can be withdrawn free from federal tax if used for tuition expenses at a public, private or religious elementary, middle, or high school.

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