Qualifying PA 529 GSP accounts will receive $100 deposit to bolster savings
HARRISBURG » Owners of qualifying PA 529 Guaranteed Savings Plan (GSP) accounts will receive a $100 deposit made into their accounts. In addition, assetbased fees for all PA 529 GSP account owners will be waived for the fiscal year beginning July 1.
Pennsylvania Treasurer Stacy Garrity made the announcement earlier this week, saying the deposit and fee waivers are being funded by PA 529 GSP surplus earnings.
“The PA 529 GSP is a great way to offset the effects of inflation,” Garrity said in a statement. “Any family looking to make postsecondary education more affordable should consider the benefits of the PA 529 GSP. Giving participants this deposit and a year of waived assetbased fees is a way to share the success of the plan with families who are dedicated to saving for their child’s education.”
To be eligible for the $100 deposit, a PA 529 GSP account must have a minimum of $100 in contributions as of June 30, 2022. Account earnings do not count toward the qualifying $100, according to a press release announcing the initiative.
“Investing in the PA 529 GSP gives parents peace of mind,” Garrity said. “They know that as tuition rates climb, they’ve already locked in their child’s future education at today’s price.”
There are nearly 110,000 PA 529 GSP accounts with $2.2 billion saved for future postsecondary education expenses, according to the release. Account earnings are based on college tuition inflation rates, and families can select the tuition credit rate they wish to save at, whether that’s a community college or an
Ivy League university. Saving at today’s credit rate will cover the same credit in the future.
PA 529 accounts can be used to pay for tuition, fees, books, equipment and room and board at technical schools, apprenticeship programs, community colleges, and four-year colleges nationwide.
PA 529 plans have significant state and federal tax advantages and can be used for a wide variety of qualifying technical, collegiate, apprenticeship and K-12 educational expenses. To learn more, visit pa529.com or call 800-440-4000.