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Pennsylvania 529 Investment Plan
The Pennsylvania 529 Investment Plan switched to Pennsylvania Treasury Department as program manager in July 2010 but still uses Upromise Investment Advisors, which was acquired by Ascensus College Savings in 2013, as recordkeeper and Vanguard as investment manager. The program features 3 age-based investment options and 10 static investment options, including a socially responsible equity portfolio, using Vanguard-managed portfolios. Accounts can be linked to the Upromise rewards service.
Savingforcollege.com's 5-Cap Ratings provides an evaluation and comparison of 529 plans, utilizing a formula that examines dozens of factors grouped into the following categories. (Scale 0 to 5; 5 is highest)
Did you know?
Residents are not limited to investing in their own state's plan. Another state may offer a plan that performs better and has lower fees. If there is no tax break offered for in-state investors ... shop around!
Also, the plan chosen does not affect which state the student enrolls in. An investor can live in NY, invest in a plan from NV and send a student to college in FL.
Enroll directly with the program.
2002, but substantially changed in November 2006
Pennsylvania Treasury Department
Pennsylvania Treasury Department, with Ascensus College Savings as record-keeper and servicing agent, and Vanguard as investment manager.
Pennsylvania Treasury Department
Through May, 2018.
Individuals at least 18 years old, UGMA/UTMA custodians, and trusts.
Accepts contributions until all account balances in Pennsylvania's 529 plans for the same beneficiary reach $511,758.
$25 per transaction, or $15 per transaction via payroll deduction. $25 minimum contribution through Ugift.
The Age-Based Options offer a choice between 3 risk levels (Conservative, Moderate, and Aggressive) each containing 5 portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the beneficiary's age, and later reassigned to more conservative portfolios as the beneficiary approaches college age.
Select among 6 multi-fund portfolios (Aggressive Growth, Growth, Moderate Growth, Conservative Growth, Income, and Conservative Income) and 4 individual-fund portfolios (Total Stock Market Index, Social Index, Inflation Protected Securities, and Money Market).
Vanguard mutual funds
Click here, you need Microsoft Excel to open this document.
Click here to visit, link to the program website containing most current performance data.
Fees & Expenses
$18 annually, waived for accounts that have elected electronic delivery of all documents.
0.34%, consisting of 0.07% fee to the Commonwealth and 0.27% combined fee to Upromise and Vanguard
Ranges from 0.02% - 0.15%
0.36% - 0.49%
Taxes and other Benefits
Contributions to Pennsylvania AND non-Pennsylvania 529 plans of up to the gift-tax annual exclusion amount ($14,000 in 2016) per beneficiary are deductible in computing Pennsylvania taxable income. Spouses filing jointly must each have at least $14,000 in income to claim the maximum $28,000 per-beneficiary deduction. Rollovers from another 529 plan or from qualified U.S. savings bonds are not eligible for the deduction.
At the Pennsylvania tax rate of 3.07% the tax deduction is worth as much as $430 ($860 joint) per beneficiary in Pennsylvania tax savings. Because Pennsylvania has made the deduction available to contributions to any 529 plan, this value does not have to be factored in when comparing plans.
Nonqualified distributions from any 529 plan are included by Pennsylvania taxpayers in Pennsylvania taxable income to the extent they are not a recovery of nondeductible contributions, following rules set forth in PIT Bulletin 2006-04. Rollovers are not subject to Pennsylvania tax.
Qualified distributions from Pennsylvania and non-Pennsylvania 529 plans are exempt. Accounts in a Pennsylvania 529 plan are also exempt from Pennsylvania inheritance tax.
Pennsylvania follows federal tax-free treatment.
Does participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?
Yes, with the Upromise rewards service. Plan participants who are Pennsylvania residents are also eligible for "Tuition Rewards" - guaranteed tuition discounts at over 330 colleges participating in the privately-run SAGE Scholars program.
Under Pennsylvania law, a Pennsylvania 529 account or any legal interest therein shall not be subject to attachment, levy, or execution by any creditor of an account owner or beneficiary.
Distributions & Terminations
The account owner, designated beneficiary, or an eligible educational institution.
Accepts requests to transfer account ownership.
Documents, Access & Reporting