Simple Cost Sharing Agreement With 529 In Philadelphia
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PA 529 Accounts Offer Tax Advantages Over Other Types of Savings Accounts Including: State tax deduction. Deduct contributions from your PA state income taxes. Tax-deferred growth.
Pennsylvania is a tax-parity state, meaning residents can obtain a tax credit for investing in any state's plan, but with an average expense ratio of 0.24%, this plan is compellingly priced relative to competitors, direct- or advisor-sold.
Top-rated 529 plans in 2025 Oregon College Savings Plan. Ohio's 529 Plan CollegeAdvantage. UNIQUE College Investing Plan (New Hampshire) ScholarShare 529 (California) Pennsylvania 529 Investment Plan. my529 (Utah) New York's 529 College Savings Program. Alaska 529.
529s count against you for federal aid “The greater the assets in the plan, the less aid is available from grants, loans and financial scholarships.” It's important to note, however, that the hit to financial aid depends on who owns the account.
What benefits can I get by saving in the PA 529 Program that I can't get from any other 529 program? As a Pennsylvania resident, you get special treatment. Not only are your contributions deductible from your Pennsylvania state income tax, the entire value of your account is exempt from Pennsylvania inheritance tax.
The amount contributed is prorated over 5 years so, for example, a $30,000 contribution would use $6,000 of the current $19,000 annual gift tax exclusion each year for 5 years. Pennsylvania inheritance tax – Funds in the account are exempt from Pennsylvania inheritance tax.
If you took a 529 savings plan withdrawal last year, you will receive IRS Form 1099-Q. It reports all the payments that have been made from the 529 savings plan, regardless of how they were spent.
Thanks to a recent legislative update and the new “529 grandparent loophole,” grandparents who own a 529 account can make significant contributions to their grandchild's education savings without necessarily affecting the grandchild's eligibility for federal student aid.
Contributions and associated earnings that you transfer to the Roth IRA must be in your PA 529 GSP Account for more than 5 years. IRS regulations permit a lifetime maximum amount of $35,000 per designated beneficiary to be rolled over from all 529 accounts to Roth IRAs.
Lastly, although the IRS can audit a student's return to verify that 529 plan earnings distributions were properly excluded from income, they don't seem to do this very often.
