Frequently Asked Questions - Opening an Account, Contributions and Fees

How do I open an account?
You can Enroll Online and submit your initial contribution electronically from your bank account, send a check by mail, or establish an Automatic Contribution Plan (PDF, 50KB). You can also Download Enrollment Materials, or you can Request an Enrollment Kit to have enrollment materials mailed to your address. Please allow five to seven days for delivery.

Who can open an account?
Any individual with a valid Social Security Number or federal taxpayer identification number who is a U.S. citizen or resident alien can open an account and contribute to a Path2College 529 Plan Account on behalf of any beneficiary. The beneficiary must have a valid Social Security Number or federal taxpayer identification number and be a U.S. citizen or resident alien. An organization described in Section 501(c)(3) of the Internal Revenue Code, an estate or a trust may also open an account. Such entities will be subject to additional restrictions or administrative requirements. You can even open an account for yourself. Open An Account.

How do I contribute to the Path2College 529 Plan?
There is a low minimum of $25 per contribution to an investment option. Contributions may be made by check or electronic funds transfer. You may also contribute through an Automatic Contribution Plan. You can contribute as little as $15 per investment option per pay period using payroll deduction through participating employers. Each account can have only one account owner and one beneficiary. However, each beneficiary may have more than one account and you may open separate accounts for as many different beneficiaries as you wish. To set up an automatic contribution plan log in to your account or use the Electronic Banking Form (PDF, 51KB).

What is the maximum that I can contribute to an account?
There is no annual limit on the amount you may contribute. However, there is an overall maximum account balance limit of $235,000 which applies to all accounts opened for a beneficiary. An account owner may contribute to a beneficiary's account if, at the time of the contribution, the total balance of all accounts for that beneficiary does not exceed $235,000. Accounts that have reached the maximum account balance limit may continue to accrue earnings.

Can I take a distribution from both a Path2College 529 Plan and Coverdell Educations Savings Account to pay for expenses in the same year?
Yes. However, you must apply the distributions to different eligible expenses in order to obtain the favorable tax treatment. See IRS Publication 970 for more detail.

Are there any fees associated with opening a Path2College 529 Plan account?
There are no sales charges, start-up or maintenance fees. The only fees for a Path2College 529 Plan account are the total annual asset-based fees which include the annual asset-based management fee that will be paid to TIAA-CREF Tuition Financing, Inc. (TFI) to cover the cost of investment management, administrative services and the underlying fund expenses. TFI is an affiliate of TIAA-CREF Individual and Institutional Services, LLC and Teachers Personal Investors Services, Inc. (TPIS), the distributors of the Path2College 529 Plan. This fee is computed at an annual rate of less than one percent (ranging from 0.50 to 0.76%) of the average daily net assets of your account (excluding assets held in the Guaranteed Option). The Guaranteed Option provides a guarantee of principal and a minimum rate of interest to the Board of the Georgia Higher Educations Savings Plan but not to account owners or beneficiaries.

Effective March 10, 2008, transfers from the Guaranteed Option to the Money Market Option will not be permitted. (If this restriction changes, investors will be notified prior to the effective date of any such change.) New contributions may be made into any of the Investment Options at any time. No other fees or charges will be applied to your account. Please note however, that the state reserves the right to change the current fee and impose new or additional fees, expenses, changes, or penalties in the future. See fee table and sample investment cost.

How do I keep track of my account?
You have online access to your account information 24 hours a day, or you can call and speak to one of our college savings specialists at 1-877-424-4377 Monday through Friday, 8:00 am - 8:00 pm Eastern Time. You'll receive quarterly and annual statements that show account activity. A separate statement will also be mailed, which lists every transaction made to the account. (Payroll deduction and automatic contributions will be recapped on your quarterly statements.) Access Your Account.