What is the account maintenance fee?

The account maintenance fee is charged to PA 529 GSP accounts to help cover the costs of administering the plan. The legislation creating the PA 529 GSP designed it to be self-sustaining, which means that tax revenues are not provided to cover the operational expenses. Instead, the plan must generate enough revenues to meet both its expenses and its obligations to pay requested college payments and other withdrawals. The account maintenance fee is a primary source of revenues to offset expenses and an important factor in maintaining the financial soundness of the PA 529 GSP.

Costs of administering the plan include such expenses as investment management costs, processing functions (e.g., opening and closing accounts, processing contributions and withdrawals, sending transaction confirmation and quarterly statements), operating the GSP call center and staffing costs.

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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.