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Wednesday, December 19, 2012

PA 529 College Savings Program Offers Tax Savings to Enrollees,

PA 529 College Savings Program Offers Tax Savings to Enrollees, Says Causer

HARRISBURG – As the year draws to a close, Rep. Martin Causer (R-Turtlepoint) is reminding residents of the tax benefits available to people who open or contribute to a Pennsylvania 529 College Savings Program.

Contributions made by Dec. 31 can help reduce the tax burden for returns filed next spring. Taxpayers can deduct up to $13,000 per beneficiary in PA 529 contributions from Pennsylvania taxable income on state returns for 2012. Married couples filing jointly can deduct up to $26,000 per beneficiary, if each spouse has taxable income of at least the amount deducted. Additionally, family and friends can contribute up to $65,000 in a single year ($130,000 for a married couple filing jointly) for each beneficiary without incurring federal gift tax consequences.

Earnings in a 529 plan are not subject to yearly taxes as they grow, and when used for qualified higher education expenses, earnings are tax-exempt upon withdrawal.

To encourage more families to enroll in a program, free enrollment, a $50 savings, is available for all new PA 529 Guaranteed Savings Plan (GSP) accounts opened by Dec. 31 at the 529 website. Use the code TAXSMART when prompted.

The PA 529 College Savings Program is administered by the Pennsylvania Treasury Department and serves more than 167,000 accounts with over $2.5 billion in assets under management.

For more information on the PA 529 College Savings Program or to enroll, visit www.RepCauser.com.

1 comment :

Anonymous said...

Each year the TAP fund requires a payment based upon the amount in the fund, it's about one percent. Consider that before investing. We have $62,000 in a tap and since instituting this fee, our ability to contribute has dropped to just paying the fee to avoid depleting the principal. When we started there was just a $25 fee per year.