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.
- What are 529 college savings plans?
- What are the income tax benefits of investing in a PA 529 account?*
- What are the gift, estate and inheritance tax benefits of investing in a PA 529 account?*
- Will owning a PA 529 account affect the beneficiary's eligibility for financial aid?
- What benefits can I get by saving in the PA 529 Program that I can't get from any other 529 program?