What are the benefits of a PA 529 plan?
PA 529 plan accounts offer tax-advantaged savings that don’t impact PA state financial aid, plus the account can be used to pay for a wide variety of education expenses at any qualified educational institution, from K-12 to college to career training programs. Watch this video to learn more about the benefits of the PA 529 College and Career Savings Program.
Why Get a PA 529 Plan?
PA 529 accounts are designed for higher education and career savings so you can:
Prepare for rising costs of college and career education
Earn tax-free growth
Reduce future borrowing
What Can You Do With a PA 529 Plan?
A PA 529 plan puts postsecondary education within reach while offering flexibility for whatever your child's future holds.
- Use funds at any qualified educational institution, from K-12 to college to career training programs.
- Save toward tuition, room and board, books, and more.
- Easily contribute from your bank account or paycheck.
- Get special tax benefits available only with a PA 529 plan for education.
Why Choose PA 529?
Benefits for PA Residents
Pennsylvania residents get a state income tax deduction, protection from PA financial aid reporting, and more.
Keystone Scholars
PA babies born after December 31, 2018 receive a $100 education investment through Keystone Scholars.
Tuition Discounts
Through SAGE Scholars Tuition Rewards Program, get discounts to 300+ private colleges nationwide.
PA 529 Accounts Offer Tax Advantages Over Other Types of Savings Accounts Including:
- State tax deduction. Deduct contributions from your PA state income taxes.
- Tax-deferred growth. Contributions grow free of federal and Pennsylvania income taxes while they remain in the account.
- Tax-free withdrawals. When used for qualified expenses, you pay no income tax on the growth in your account.
- Gift and inheritance tax benefits. PA 529 plans also provide unique gift and inheritance tax benefits, including a special provision for gifts larger than the normal limit.
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