Establishing Savings Goals Today to Help Pay for Education Tomorrow

News provided by

Jan 18, 2023, 06:40 ET

ATLANTA, Jan. 18, 2023 /PRNewswire/ -- Feeling financially secure and saving more money are common New Year's resolutions. Georgia's Path2College 529 Plan offers a variety of resources to help families learn more about how to save for college, and how to start a Georgia state tax-deductible college savings plan.

"Saving more money is high on many New Year's resolutions lists and for good reason. Saving even small amounts over time is a good way to build a solid financial foundation," said Lynne Riley, President of the Georgia Student Finance Commission.

"The resources available at Path2College529.com will help families with everything from researching college savings options, the benefits of savings versus borrowing, creating a college savings plan to easily opening an account online. The website is user-friendly to help make saving simple for everyone."

Path2College529.com offers a college savings calculator that looks at the age of your child, when he/she will start college, your savings goals, and the estimated future cost of college to help families set an ideal investment amount. Families can start an account with as little as $25. Funding the account is easy with a few clicks via online funds transfer, bill pay at the bank, or even through payroll direct deposit from work. Account holders can also send in a check or request gifts from loved ones. The account can be opened online at Path2College529.com, or by calling (877) 424-4377 for assistance.

As with any financial decision, families should research their savings and investment options before determining the best plan of action. This includes analyzing risk tolerance, looking at the portfolio options and considering the tax benefits. Path2College529.com has a short video on the website that explains how the plan works. Additionally, families should look at the fees associated with saving.

"Path2College is the nation's lowest cost 529 plan¹," said Riley. "It is the only 529 plan that offers a Georgia state income tax deduction for saving."

About Georgia's Path2College 529 Plan

The Path2College 529 Plan was established in 2002 and has over $4.5Billion in assets and more than 222,000 accounts. Additionally, families have used more than $1.8 billion from their Path2College 529 Plan accounts to pay for education expenses².

Contributions to the 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 for those filing a single return. Any earnings on those contributions in the Path2College 529 Plan are federal and Georgia income tax-deferred.

Withdrawals for qualified higher education expenses such as tuition, books, supplies and many other items are federal and Georgia income tax-free. Funds within the Path2College 529 Plan may be used at schools in the United States, and some abroad, for eligible education-related expenses.

¹ Source: ISS Market Intelligence 529 College Savings Fee Analysis 4Q 2022. Path2College 529 Plan's average annual asset-based fees are 0.09% for all portfolios compared to 0.51% for all 529 plans, 0.87% for advisor-sold plans, and 0.35% for direct-sold plans.

² Source: As of 1/12/23 TIAA-CREF Tuition Financing, Inc. internal records.

To learn more about Georgia's Path2College 529 Plan, its investment objectives, risks, charges and expenses please see the Plan Description at path2college529.com. Read it carefully. If the funds aren't used for qualified higher education expenses, a federal 10% penalty tax on earnings (as well as federal and state income taxes) may apply. Investments in the Plan are neither insured nor guaranteed and there is the risk of investment loss. Consult your legal or tax professional for tax advice. Check with your home state to learn if it offers tax or other benefits such as financial aid, scholarship funds or protection from creditors for investing in its own 529 plan. TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, is the distributor and underwriter for the Path2College 529 Plan.

SOURCE Path2College