PA Treasury Department: 529 Programs
529 plans help families save for education. The name "529" refers to Section 529 of the IRS tax code, which gives these plans special tax breaks to encourage saving.
There's no doubt your children or grandchildren will benefit from education. Studies show that a college degree is worth nearly a million dollars in lifetime earnings. Saving for education is an investment in their future.
Two ways to save. The Pennsylvania 529 College and Career Savings Program offers two savings plans. The PA 529 Guaranteed Savings Plan (GSP) is a lower-risk plan that helps your savings keep pace with rising higher education tuition. The PA 529 Investment Plan (IP) lets you choose from 17 investment options from The Vanguard Group. Compare plans.
Easy to set up and easy to use. You can use a 529 plan to pay for qualified higher education expenses at most colleges and universities, and many technical and career schools as well as certain expenses for a registered apprenticeship program. You may also use the money to pay for tuition expenses up to $10,000 at elementary or secondary public, private, or religious schools. You may also use your PA 529 account for repayment of principle and interest on a qualified education loan for a PA 529 beneficiary or sibling not to exceed $10,000. There are no income limits, and anyone can contribute. Grandparents, aunts, uncles and family friends can all help your student pay for education.