HARRISBURG, Pa., Jan. 26, 2017 /PRNewswire/ -- PA Treasurer Joe Torsella today announced that, for the first time, Pennsylvanians can deposit their state income tax refund directly into an existing, tax-exempt Pennsylvania 529 College Savings Program account. With the new option, all or a portion of a refund can be sent to one or multiple accounts.
"Most families understand the importance of higher education, but for many it is difficult to budget extra money to save," said Torsella. "We have to make it easier to save, and giving families the option to send their state tax refund directly into a PA 529 College Savings account is one way to do that. I hope many Pennsylvanians use this new opportunity to invest in their children's future success."
The process is simple. When completing your PA-40, Personal Income Tax Return, enter code H and the amount in the donation section between lines 32-36. Additionally, submit a PA-Schedule P with your return when donating to one or more Pennsylvania 529 College Savings Program accounts. More information is available in the 2016 PA-40, Personal Income Tax Return Instructions.
PA Treasury's 529 College Savings Program offers generous tax benefits to help fund higher education, such as college or a vocational school. Pennsylvanians can open an account with as little as $15 or $25 depending on plan selection. These plans afford Pennsylvania families the flexibility to use the savings at most schools nationwide. Contributions are tax-exempt and when using plan withdrawals for qualified educational expenses, they are not subject to tax.
More than 200,000 people are currently saving more than $4 billion in the PA 529 College Savings Program, which provides two ways to save: the PA 529 Guaranteed Savings Plan (GSP) and the PA 529 Investment Plan (IP). The primary difference is the way the savings grow in each account.
The PA 529 GSP is a lower-risk plan structured so that savings keep pace with the rising costs of higher education. This plan shelters participants from the volatility of the stock market. The PA 529 IP features low fees and more than a dozen investment options ranging from conservative to aggressive. The Vanguard Group, one of the nation's largest financial services companies, runs this plan. Returns on the IP are based on financial market performance.
Visit www.PA529.com or call (800) 440-4000 to open or contribute to a PA 529 account.
Media contact: Debra S. Tingley, APR, (717) 787-2991 or firstname.lastname@example.org
The Pennsylvania Treasury is an independent department of state government led by the state treasurer, who is elected every four years. The department's primary duty is to safeguard and manage the state's public funds. It invests state money to generate income on behalf of the citizens of Pennsylvania, reviews and processes payments for state government agencies, and serves as custodian of more than $100 billion in state funds. Key Treasury programs include Unclaimed Property, PA 529 College Savings Program and the Board of Finance and Revenue.
The Pennsylvania 529 College Savings Program sponsors two plans -- the PA 529 Guaranteed Savings Plan (GSP) and the PA 529 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 statement (available at www.PA529.com or by calling (800)440-4000) to learn more about that plan including investment objectives, risks, fees and tax implications. The Pennsylvania 529 College Savings Program sponsors two plans – the PA 529 Guaranteed Savings Plan (GSP) and the PA 529 Investment Plan (IP). The guarantee of the PA 529 GSP 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 statement (available at www.PA529.com or by calling 800-440-4000) to learn more about that plan, including investment objectives, risks, fees and tax implications.
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SOURCE Pennsylvania Treasury