How much is the account maintenance fee?

Like the fees associated with most other types of investments, the annual PA 529 GSP account maintenance fee is based on the value of your account – your assets. The current fee is 0.44% of the value of your account if used for qualified expenses (with an annual cap of $500), which is lower than the fees associated with most other 529 plans. You can reduce your fee to 0.35% (with an annual cap of $250) by selecting to receive all account statements and notices via email.

The fee is automatically deducted from your account at the end of each calendar quarter. On that date, one fourth of 0.44% (or 0.11%) or 0.35% (0.0875%) of the value of your account is deducted and a corresponding number of GSP Credits is subtracted. For example, if the value of an account saving at the State System of Higher Education Tuition level if used for qualified expenses were $25,000 on the last day of the quarter, the standard fee would be $27.50 ($25,000 x 0.0011 = $27.50) and the reduced fee would be $21.88 ($25,000 x 0.000875 = $21.88).

The dollar amount deducted and the corresponding number of GSP Credits subtracted from your account are shown on your quarterly statement under the entry "Account Maintenance Fee." To keep the fee from affecting your account value and the number of GSP Credits in your account, simply make a contribution in the same amount as the fee deducted ($27.50 or $21.88, respectively, in the above examples). Doing so will restore your account to its status before the fee was taken.

Treasury's goal is to keep the fee as low as possible. To that end, the amount of the fee will be reexamined periodically and account owners will be notified of any changes.

Related Topics

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.