A "member of the family" of a beneficiary is a person related to that beneficiary as follows: (i) a son or daughter, or a descendant of either; (ii) a stepson or stepdaughter; (iii) a brother, sister, stepbrother or stepsister; (iv) the father or mother, or an ancestor of either; (v) a stepfather or stepmother; (vi) a son or daughter of a brother or sister; (vii) a brother or sister of the father or mother; (viii) a son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law or sister-in-law; (ix) the spouse of the beneficiary or of any of the other foregoing individuals; or (x) a first cousin of the beneficiary. For this purpose, a child includes a legally adopted child and a brother or sister includes a half-brother or half-sister.
Georgia HOPE Scholarship
Georgia's HOPE Scholarship is available to Georgia residents who have demonstrated academic achievement. The scholarship provides money to assist students with their educational costs of attending college in Georgia. For restrictions and additional details, visit www.gacollege411.org.
The HOPE Credit provides a federal income tax credit based on the first $4,000 in postsecondary education expenses paid by the taxpayer during the tax year. For restrictions and additional details, visit www.irs.gov.
Individual Account Application
This is the account application typically used by an individual (parent, grandparent, family member or friend). Download the Individual Account application (PDF).
Individual Retirement Account - A tax-deferred or tax-free retirement account established by an individual that permits the individual to set aside up to a certain amount per year, with earnings tax-deferred until withdrawals begin at age 59 1/2 or later or, in the case of a Roth IRA, are tax-free on withdrawal. See a tax advisor for more detailed information.
The Internal Revenue Service is the nation's tax collection agency and administers the Internal Revenue Code enacted by Congress.
The Plan is the Path2College 529 Plan.
The program manager is the person or entity that the State engages to provide administrative and other services for the program. The Path2College 529 Plan program manager is TIAA-CREF Tuition Financing, Inc. (TFI).
Qualified Higher Education Expenses
Qualified higher education expenses include tuition, fees, and the cost of books, supplies, and equipment required for the enrollment and attendance of the beneficiary at an eligible educational institution, and certain room and board expenses. Qualified higher education expenses also include certain additional enrollment and attendant costs of a beneficiary who is a special needs beneficiary in connection with the beneficiary's enrollment or attendance at an eligible institution. For this purpose, an eligible educational institution generally includes accredited postsecondary educational institutions offering credit toward a bachelor's degree, an associate's degree, a graduate-level degree or professional degree, or another recognized postsecondary credential.
Under the American Recovery and Reinvestment Act of 2009 (the Economic Stimulus Act), computers and related equipment are considered qualified higher education expenses for 2009 and 2010 only, regardless of whether the school requires the purchase of a computer.
A tax-free reinvestment from one qualified plan to another within a specific time frame, usually 60 days.
You are permitted to transfer funds from another 529 college savings plan to an account in the Path2College 529 Plan for the same beneficiary once within a 12-month period without incurring federal income tax. The 529 college savings plan from which you are transferring funds may be subject to differences in features, costs and surrender charges. You should consult with your tax advisor or the other 529 college savings plan. State and local taxes may apply.
Glossary terms continue: