Saving money for your children’s college education can pay enormous dividends in the future. Families must identify ways to incorporate college savings with their personal situations. The Pennsylvania 529 college savings program was created for this purpose. The PA 529 college fund helps parents with some incredible options on how to accomplish their financial goals. There are two Pennsylvania 529 college savings plans that are available. The PA 529 guaranteed savings plan and the PA 529 investment plan. Both of these programs are great options that can help families start saving now for their children’s future tuition fees.
Pennsylvania 529 Guaranteed Savings Plan
When opening up a 529 college savings account it is very important to start making contributions regularly. Every dollar saved for college will help you in the future. The 529 guaranteed savings plan or GSP, can help parents keep up with the rising costs of tuition. The program offers Pennsylvania taxpayers deductions on contributions that are made into the program. Pennsylvania taxpayers can save up to $13,000 per beneficiary per year. Married couples can deduct up to $26,000 per beneficiary per year. These tax savings are some of the best in the country. Another great advantage of the GSP program is the tax-deferred growth. The money that you invest into the account grows tax-free from federal and state taxes. This helps parents save money faster which can help them invest more money into their portfolios.
Pennsylvania 529 Investment Plan
The 529 college savings plan of Pennsylvania is run by the Vanguard group. The Vanguard group is one of the nation’s largest financial service companies. They offer over 13 different investment options for their account holders. Customer service representatives are available to assist you with your tuition planning. Having a wide variety of options gives parents the ability to save money the way they feel comfortable with. Balanced and aggressive accounts are available for all account holders. Age-based portfolios are also incredible options for parents who want to make steady contributions. The tax benefits of the Pennsylvania 529 investment plan are exactly like the guaranteed savings plan.
Pennsylvania 529 College Savings Plans Enrollment
To enroll in a 529 plan you will have to fill out an application. Once the application is filled you can open the account with as little as a $250 contribution. Monthly contributions can be much smaller than that. This offers parents the flexibility that they need to save money at their own pace. Developing an organized plan to make steady contributions will help you reach your fundamental goals. Almost everyone over the age of 18 can open up a 529 college savings plan. Grandparents and relatives can also participate by opening up their own accounts or making contributions into your account. In many cases the contributions that relatives or loved ones make are also tax-deductible.
Saving money for college can be very hard. Having organized plan, and staying disciplined are the keys to generating the money that you need to help pay for your child’s future education. The need for higher education has never been more prevalent than now. Take advantage of the many benefits that exist with the Pennsylvania 529 college savings plan.