Why Choose a Pennsylvania 529 Higher Education Savings Plan?

As a Pennsylvania resident, you get special treatment. Not only are your contributions deductible from your Pennsylvania state income tax, the entire value of your account is exempt from Pennsylvania inheritance tax.* Assets held in a PA 529 plan are not counted when determining state financial aid for college. Assets in any other state 529 plan are counted. PA 529 assets are also protected from creditors in Pennsylvania. Assets in out-of-state plans are not protected.

Plus, Pennsylvanians can now send state tax refunds directly to a PA 529 College and Career Savings account. You can contribute all or part of your Pennsylvania state income tax refund directly to an existing PA 529 College and Career Savings Program account. All or a portion of a refund can be sent to one or multiple accounts.

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 and Career Savings Program accounts. More information is available in the PA-40, Personal Income Tax Return Instructions. Visit Revenue.pa.gov to learn more.

Another unique benefit to PA 529 plans is the SAGE Scholars Tuition Rewards program, which offers tuition discounts to 300+ private colleges nationwide, including over 50 in Pennsylvania. One more great way to stretch your savings with a Pennsylvania 529 College and Career Savings Plan.

*The availability of tax or other benefits may be contingent on meeting other requirements. A withdrawal or portion of a withdrawal, not used for qualified expenses may be subject to state and local income taxes. The earnings portion of the withdrawal will be subject to federal income tax and, with a few exceptions, an additional 10% federal income tax penalty.

 

Contact our office 215-945-4200 today for Expert Tax Preparation or Tax Problem Resolution and Tax Planning services with a CPA.  Our office is open year-round for services and assistance.