Save For College, Save on Taxes, Says Sankey
HARRISBURG – State Rep.-elect Tommy Sankey, R-Clearfield, is asking parents and grandparents who are thinking of starting a college savings account to consider the benefits of opening a Pennsylvania 529 College Saving Program.
“Opening a 529 plan is an investment in our future,” Sankey said. “Considering the history of the cost of a college education, there’s no better time than now to start saving toward a gift that will pay off down the road.”
The PA 529 plan is designed to help savings grow to meet the future cost of education. When used for qualified higher education expenses, PA 529 Guaranteed Savings Program contributions grow at the rate of tuition inflation (subject to fees and premiums).
The Pennsylvania Treasury is offering an added incentive of allowing contributions made by Monday, Dec. 31, to help reduce your 2012 Pennsylvania state taxable income. Taxpayers can deduct up to $13,000 per beneficiary in PA 529 contributions on their state tax returns for 2012, and married couples filing jointly can deduct up to $26,000 per beneficiary if each spouse has taxable income of at least the amount deducted.
Additionally, family and friends can contribute up to $65,000 in a single year ($130,000 for a married couple filing jointly) for each beneficiary without incurring federal gift tax consequences (assumes no other gifts in the next four years).
For more information, or to open or contribute to an account, please visit Sankey’s website, www.RepSankey.com, and go to “Higher Education Information” on the left navigation bar.