The state of Georgia’s college savings plan, the Path2College 529 Plan, saw strong growth in the last quarter, with 4,740 new accounts opened—a 26 percent increase in new accounts opened and a 23 percent increase in contribution dollars when compared to 2019, according to a press release.
The Path2College 529 Plan was established in 2002, and as of Sept. 30, there are more than 188,000 accounts and $3.5 billion invested in the plan. Additionally, more than $1.2 billion that was saved in the plan has been used for education expenses on behalf of over 63,000 beneficiaries.
“In 2019, the plan surpassed the $3 billion-dollar savings milestone. Despite the circumstances 2020 has presented, we are continuing to see the importance of saving for education with the growth of the Path2College Plan,” said Lynne Riley, president of the Georgia Student Finance Commission which partners with the Office of the State Treasurer to administer the Path2College 529 Plan for the state of Georgia.
For as little as $25, anyone can make a contribution to a beneficiary’s account in the state of Georgia’s Path2College 529 Plan.
Additionally, contributions to the state of Georgia’s Path2College 529 Plan are deductible for Georgia income tax purposes up to $8,000 per year, per beneficiary, for those filing a joint return and up to $4,000 per year, per beneficiary, for those filing a single return. Any earnings on those contributions in the Path2College 529 Plan are federal and Georgia income tax-deferred.
Withdrawals from the state’s 529 plan for qualified higher education expenses, which may include tuition, fees, books, supplies and equipment required for enrollment, such as computers and related technology such as internet access fees, software or printers, are federal and Georgia income tax-free. Funds can be used at virtually any school in the United States and some abroad towards education-related expenses incurred in pursuit of a two-year vocational/technical, four-year, or graduate degree.
Information: www.Path2College529.com or (877) 424-4377.
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