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Pennsylvania 529 Investment Plan

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Good PA resident benefits

PA resident benefits

Pennsylvania's 529 Investment Plan is available to residents of any state, and offers 26 Vanguard investment options, including a socially responsible equity portfolio. Pennsylvania residents may enjoy a state tax deduction for contributions to the plan.

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Pennsylvania 529 Investment PlanHonors

KEY METRICS

OVERVIEW

Program type

Savings

Inception

2002, but substantially changed in November 2006

State agency

Pennsylvania Treasury Department

Tax deduction

For single filers: $19,000/yr per beneficiary

For joint filers: $38,000/yr per beneficiary

Program manager

Pennsylvania Treasury Department, with Ascensus College Savings as record-keeper and servicing agent, and Vanguard as investment manager.

Program distributor

Pennsylvania Treasury Department

Manager contract term

MORE INFORMATION

Eligibility

State residency requirements:

None

Who can be a participant/owner in the program?

Individuals at least 18 years old, UGMA/UTMA custodians, and trusts.

Significant time or age restrictions imposed by the program:

None

Did you know?

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

    Up to $38,000/yr ($19,000/yr for single filers) per year are eligible.

  • 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.

Pennsylvania 529 Investment Plan
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Contributions

Maximum contributions:

Accepts contributions until all account balances in Pennsylvania's 529 plans for the same beneficiary reach $511,758.

Minimum contributions:

No initial deposit required. Subsequent deposits can be a little as $1.

Does the program offer an e-gifting platform for receiving gift contributions?

This plan offers a robust gifting platform that allows gift-givers to save their own profile for recurring or future contributions.

Investment Options

Investors in Pennsylvania 529 Investment Plan can select from the following investment options. Click on a portfolio name for more information.

The Target Enrollment options contain 12 portfolios invested in Vanguard mutual funds and/or the Vanguard Short-Term Reserves Account. Contributions are placed into the portfolio corresponding to the beneficiary's age or anticipated year of enrollment and later reassigned to more conservative portfolios as the beneficiary approaches college age.
PortfolioE.R. % Equity1yr performance
Pennsylvania Commencement Portfolio0.18%11.6%3.8%
Pennsylvania Target Enrollment 2038/20390.19%89%6.57%
Pennsylvania Target Enrollment 2036/20370.19%80%6.49%
Pennsylvania Target Enrollment 2034/20350.19%68%6.18%
Pennsylvania Target Enrollment 2032/20330.19%57%5.96%
Pennsylvania Target Enrollment 2030/20310.19%49%5.77%
Pennsylvania Target Enrollment 2028/20290.18%34.29%5.18%
Pennsylvania Target Enrollment 2026/20270.18%23.43%4.51%
Pennsylvania Target Enrollment 2024/20250.18%18.36%4.2%
Pennsylvania Target Enrollment 2022/20230.18%14.5%3.87%
Pennsylvania Target Enrollment 2040/20410.19%95%6.88%
Pennsylvania Target Enrollment 2042/20430.19%95%6.63%

Age-based/Enrollment Year investment options:

The Target Enrollment options contain 12 portfolios invested in Vanguard mutual funds and/or the Vanguard Short-Term Reserves Account. Contributions are placed into the portfolio corresponding to the beneficiary's age or anticipated year of enrollment and later reassigned to more conservative portfolios as the beneficiary approaches college age.

Static investment options:

Select among 6 multi-fund portfolios (Aggressive Growth, Growth, Moderate Growth, Conservative Growth, Income, and Conservative Income) and 8 individual-fund portfolios.

Underlying investments:

Vanguard mutual funds

Underlying fund allocations:

Portfolio Fees & Performance Lookup

Fees & Expenses

Enrollment or application fee:

None.

Account maintenance fee:

$10 annually, waived for accounts that have elected electronic delivery of all documents.

Program management fees:

0.29%, consisting of 0.0500% fee to the Commonwealth and 0.1175% combined fee to Upromise and Vanguard

Expenses of the underlying investments:

Ranges from 0.02% - 0.12%

Total asset-based expense ratio:

0.1875% - 0.2875%

Taxes and other Benefits

Tax deduction for single filers:

$19,000/yr per beneficiary

Tax deduction for joint filers:

$38,000/yr per beneficiary

Program match on contributions:

None., The Pennsylvania Treasury Department invests $100 for every child born in the Commonwealth via the Keystone Scholars program. Parents have until a child's first birthday to claim the $100 Keystone Baby Scholars investment by registering online or calling 1-800-440-4000.

State tax deduction or credit for contributions:

Contributions to Pennsylvania AND non-Pennsylvania 529 plans of up to the gift-tax annual exclusion amount ($19,000 in 2025) per beneficiary are deductible in computing Pennsylvania taxable income. Spouses filing jointly must each have at least $19,000 in income to claim the maximum $38,000 per-beneficiary deduction. Rollovers from another 529 plan or from qualified U.S. savings bonds are not eligible for the deduction.

Calculate your Pennsylvania 529 tax benefit

Find out how much you can save on state taxes this year by contributing to a Pennsylvania 529 plan.

Your tax savings per year
$0

Household income

$100,000

Monthly Contribution

$100

State tax recapture provisions:

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.

State definition of qualified expenses

The state's definition of qualified education expenses 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. Distributions from a 529 account directly to a Roth IRA are considered a qualified expense for state income tax purposes.

State tax treatment of qualified distributions:

Qualified distributions from Pennsylvania and non-Pennsylvania 529 plans are exempt. Accounts in a Pennsylvania 529 plan are also exempt from Pennsylvania inheritance tax.

State tax treatment of rollovers:

Pennsylvania follows federal tax-free treatment.

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

Is there a rewards program or outside scholarship program that works with this 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.

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.

Statutory protection of an account from creditors:

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.

Pennsylvania 529 Investment Plan
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Distributions & Terminations

To whom are distributions made payable:

The account owner, designated beneficiary, or an eligible educational institution.

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:

Contact

Website:

http://www.pa529.com/investment-plan/

Telephone:

1-800-440-4000

Start saving for your child's future today

Complete the online application and make your first deposit

Pennsylvania 529 Investment Plan
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