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Path2College 529 Plan

The Georgia Path2College 529 Plan, a TIAA-managed 529 savings program features two age-based options and five fixed options including a guaranteed option with interest at a rate between 1% and 3% as declared each October.

Our Ratingx

4 of 5

Fee Scorex

4.5 of 5

Performancex

3.5 of 5

  • Program typeSavings
  • Inception2002
  • State agency
    Georgia Higher Education Savings Plan
  • Tax deduction
    Tax deduction for single filers $2,000/yr
    Tax deduction for joint filers $4,000/yr
  • Program Manager
    TIAA-CREF Tuition Financing, Inc.
  • Program distributor
    TIAA-CREF Individual & Institutional Services, LLC
  • Manager contract termUNLOCK PRO

Ratings & Rankings

Our overall rating for GA residents

This is an excellent program with many benefits for the participant and positive investment attributes. If it has any significant weaknesses then it also has some particularly good things to recommend it.

Our overall rating for non-residents

This is an excellent program with many benefits for the participant and positive investment attributes. If it has any significant weaknesses then it also has some particularly good things to recommend it.

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.


3.89of 5
top-ten

Each plan's performance score is developed directly from Savingforcollege.com's Quarterly 529 Performance Rankings. A 529 savings plan must have at least one year of performance history before they will be assigned a 5-cap rating. For those plans that are not part of our quarterly performance rankings, such as plans offering a single set of bank-based investment options, we assign a performance score by evaluating the returns currently available on similar types of investments outside of 529 plans.

Eligibility

State residency requirements:

None

Who can be a participant/owner in the program?

U.S. citizens and resident aliens at least 18 years old, UGMA/UTMA custodians, and legal entities.

Significant time or age restrictions imposed by the program:

None

Did you know?

  • GA residents can claim a tax deduction for contributions to a GA 529 plan.

    Contributions are deductible in computing state taxable income

  • 529 plan contributions grow tax-free.

    Withdrawals are tax-free when used to pay for qualified higher education expenses.

  • You can contribute as much as you want, as often as you want.

    The key is to get started. Enroll today by completing a quick form online.

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Contributions

Maximum contributions:

Accepts contributions until all account balances in Georgia's 529 plan for the same beneficiary reach $235,000.

Minimum contributions:

$25, or $15 per pay period via payroll deduction.

Investment Options

Age-based investment options:

Choose between the Managed Allocation Option and the Aggressive Managed Allocation Option, each containing 9 portfolios of underlying mutual funds. Under either option, 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.View more age-based investment options

Static investment options:

Select among 3 multi-fund portfolios (the 100% Equity Option, the Balanced Fund Option, and the 100% Fixed Income Option), the Guaranteed Option, and the Money Market Option.View more static investment options

Underlying investments:

TIAA-CREF, DFA and Vanguard mutual funds; the Guaranteed Option is invested in a funding agreement with TIAA-CREF Life Insurance Company that guarantees principal and a minimum 1% - 3% annual rate of interest (actual rate, which may be greater, is declared annually).View a full list of this plan's investment options

Underlying fund allocations:

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Portfolio Fees & Performance Lookup

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Fees & Expenses

Enrollment or application fee:

None.

Account maintenance fee:

None.

Program management fees:

0.08% manager fee plus 0.06% state fee. Manager fee subject to breakpoints (0.07% when assets equal or exceed $3.0 billion, and 0.06% at $4.0 billion). Manager and state fees do not apply to the Guaranteed Option.

Expenses of the underlying investments:

0.06% to 0.18%; none for the Guaranteed Option.

Total asset-based expense ratio:

0.19% - 0.32%. None for the Guaranteed Option.

Taxes and other Benefits

  • Tax deduction for single filers$2,000/yr
  • Tax deduction for joint filers$4,000/yr

Example

Married filing jointly residents contributing $100/month can expect an additional $0 a year in tax savings.

Program match on contributions:

None.

State tax deduction or credit for contributions:

Contributions to the Georgia 529 plan of up to $2,000 per beneficiary per year for those filing a single return and $4,000 per year per beneficiary for those filing a joint return are deductible in computing Georgia taxable income. Incoming rollovers from other 529 plans do not qualify as contributions eligible for the state income tax deduction. Contribution deadline is April 15 of the following year.

State tax recapture provisions:

The principal portion of rollovers and nonqualified withdrawals from this plan are included in Georgia taxable income to the extent of prior Georgia tax deductions. Recapture also applies when previously-deducted contributions are withdrawn for expenses deducted under federal section 222.

State definition of qualified expenses

The state conforms with the federal definition of qualified education expenses, which includes expenses for higher education, as well as up to $10,000 per year in tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school.

State tax treatment of qualified distributions:

Qualified distributions from Georgia and non-Georgia 529 plans are exempt. Note: if a withdrawal from the Georgia 529 plan is non-qualified, the earnings must be reported on the account owner's, not the beneficiary's, Georgia income tax return.

State tax treatment of rollovers:

Georgia follows federal tax-free treatment except that outbound rollovers are subject to the recapture of prior state tax deductions.

Does the sponsoring state exclude the value of an account for state financial aid purposes?

Yes

Does participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?

No

Does the program have a formal agreement with a rewards program or outside scholarship program?

Yes, the Upromise Rewards program can be linked to any 529 college savings plan. Upromise Rewards is free to join and offers members cash back for college.

Upromise Helps Families Save for College

Upromise Helps Families Save for College

Statutory protection of an account from creditors:

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Did you know?

  • Residents are not limited to investing in their own state's 529 plan.

    Another state may offer a plan that performs better and has lower fees.

  • The 529 plan chosen does not affect which state the student enrolls in.

    You can live in New York, open a plan from Nevada and send a student to college in Florida.

  • The best way to maximize your college savings?

    Start early and save often. You can get started today with easy online enrollment.

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Distributions & Terminations

To whom are distributions made payable:

Eligible educational institution or account owner, as directed by the account owner.

Account Changes

Policy regarding participant/owner changes:

Accepts requests to transfer account ownership.

Documents, Access & Reporting

Does participant have online password-protected access to account?

Yes

Can the complete enrollment process including funding be done online?

Yes

Documents and other services accessible or downloadable on the program's public Web site:

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Contact

Telephone:

1-877-424-4377

Start saving for your child's future today


Step 1

Click the blue Enroll Now button to the right

Step 2

Complete the online application and make your first deposit

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