What are the income tax benefits of investing in a PA 529 account?*

Earnings grow federal income tax-free – Earnings grow tax-deferred and are free from federal income tax when used for qualified higher education expenses.

Earnings grow state income tax-free – For Pennsylvania taxpayers, earnings grow tax-deferred and are free from Pennsylvania state income tax when used for qualified higher education expenses.

Pennsylvania state income tax deduction – Pennsylvania taxpayers can deduct up to $14,000 in contributions per beneficiary per year ($28,000 if married filing jointly, assuming each spouse had income of at least $14,000) from their Pennsylvania taxable income for the purposes of determining their state income taxes.

* The availability of tax or other benefits may be contingent on meeting other requirements. The earnings portion of a withdrawal not used to pay for qualified expenses may be subject to federal income tax and a 10% federal penalty tax; the entire withdrawal may be subject to state and local income taxes.

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The Pennsylvania 529 College Savings Program sponsors two plans-the Guaranteed Savings Plan (GSP) and the 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 to learn more about that plan including investment objectives, risks, fees, and tax implications.