Pennsylvania Treasurer Stacy Garrity announced a fee reduction for the PA 529 College and Career Savings Program Investment Plan during College Savings Month.
A portion of the PA 529 Investment Plan’s fees will decrease from 0.05% to 0.045%. Fees for the PA 529 Guaranteed Savings Plan have also been waived for the fifth consecutive year. Many Guaranteed Savings Plan accounts will receive a $1,000 bonus contribution.
Fee reductions and waivers implemented since Garrity took office have saved Pennsylvania families more than $29 million. Morningstar has given the PA 529 Investment Plan a Gold rating for the past three years.
PA 529 accounts can be used for qualifying expenses at technical schools, colleges and universities, K-12 schools, and certain apprenticeship and credential programs. The plans offer tax-free growth and qualified withdrawals.
Pennsylvania taxpayers may deduct annual PA 529 contributions of up to $19,000, or $38,000 for married couples filing jointly, from their state income taxes. PA 529 accounts are not subject to Pennsylvania inheritance tax and do not affect eligibility for state financial aid.
Children born in Pennsylvania in 2019 or later receive an automatic $100 Keystone Scholars scholarship. The money is invested by the Pennsylvania Treasury and can be used for postsecondary education after the child turns 18.
Families can claim a child’s Keystone Scholars account at pa529.com/keystone. More information about PA 529 plans is available at pa529.com or by calling 800-440-4000.
