Harrisburg – Dec. 17, 2014 – To better manage the cost of higher education and cut tax liability this year, state Sen. Jim Brewster (D-Allegheny/Westmoreland) today reminded students and parents that contributions to an approved college savings plan by Dec. 31 are tax deductable.
“The high cost of a college education is a real challenge for students and parents,” Brewster said. “A 529 plan helps families manage costs and provides a means to reduce tax obligations.”
Brewster noted that state Treasurer Rob McCord’s office is offering free enrollment in the PA Guaranteed Savings Plan and the PA 529 Investment Plan.
“There are a great many resources available to help students, parents and families deal with the high cost of college,” Brewster said. “Establishing a PA 529 plan and making contributions is an excellent way for families to both save for college and lower tax bills at the same time.”
The treasurer reported that there are now nearly 200,000 accounts with more than $3.3 billion in assets that are being managed by his office.
Taxpayers can deduct up to $14,000 per beneficiary in PA 529 contributions from Pennsylvania taxable income on their state tax returns for 2014. Married couples filing jointly can deduct up to $28,000 per beneficiary if each spouse has taxable income of at least the amount deducted.
The PA 529 College Savings Program is offering free enrollment ($50 savings) for all new PA 529 Guaranteed Savings Plan (GSP) accounts opened by Dec. 31.
Brewster said that if students, parents, guardians or others need more information or want to enroll, they can visit www.PA529.com. To take advantage of the $50 savings, use enrollment code Brewster when prompted.
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