Frequently Asked Questions


Benefits and Features

529 plans are plans offered by states or colleges that are established in accordance with Section 529 of the Internal Revenue Code, to help individuals and families save for education in a tax-advantaged way.


Contributions and Rollovers

Anyone – parents, grandparents, aunts, uncles – even family friends.


PA 529 Guaranteed Savings Plan

It is a tax-advantaged and lower-risk 529 plan intended to help individuals or families save for education. It is a program established by the Commonwealth of Pennsylvania and administered by the Treasury Department. Growth on contributions to a PA 529 GSP account is based on post-secondary tuition inflation at a tuition level you choose.

With the PA 529 GSP, if you save enough to pay for a semester of college at one tuition level today, you are guaranteed to have enough to pay for a semester of college at the same tuition level tomorrow. (Some restrictions apply; see the PA 529 GSP Disclosure Statement for details.)


PA 529 Investment Plan

It's a tax-advantaged 529 plan intended to help an individual or a family pay the costs of education. It is a program established by the Commonwealth of Pennsylvania and administered by the Treasury Department. The plan is available to all U.S. citizens and resident aliens, age 18 or older, with a valid Social Security or taxpayer identification number.

With the PA 529 IP, you can choose from 16 investment options, including three age-based options, from Vanguard, one of America's largest financial service companies.


About Your PA 529 Plan

Withdrawals from your PA 529 account are tax-free when used to pay qualified education expenses. These are defined by the Internal Revenue Code to include the following:

Qualified K-12 Education Expenses

  • Tuition up to $10,000 at an elementary or secondary public, private, or religious school.

Qualified Higher Education Expenses

As defined by the Internal Revenue Code, qualified higher education expenses include tuition, room and board (with certain limitations), required books, required supplies, required equipment, including computers, mandatory fees and special needs services.

  • Tuition
  • Room and board (as specified in the college's cost of attendance; must be at least a half-time student)
  • Required books
  • Required supplies
  • Required equipment, including computers*
  • Mandatory fees
  • Special needs services

* Must be used primarily by the beneficiary during any of the years the beneficiary is enrolled at an eligible educational institution.


Fact or Fiction

Source: Modified from the College Savings Plans Network’s Top 10 Myths about 529 Plans.

FACT: More and more families rely on student loans to pay for college, and all loans represent debt that a family incurs. Any savings, even in small increments, that a family can put away will offset the amount of debt it must take on to pay for college.


K-12 Education

Yes. You may use a PA 529 account to pay for expenses for tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school up to $10,000 per year, per beneficiary.

Connect With Us

Phone: 800-440-4000
Email: PA529@patreasury.gov

 

PA 529 College and Career Savings Program
613 North Drive | Room G-06
Harrisburg, PA 17120