Path2College 529 Plan

Financial Advisors - Give Your Clients One More Reason to Rely on Your Guidance

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After saving for retirement, planning for a child's college education is the next big financial challenge for many of your clients. Discuss college planning with all your clients and prospects, and let them know that opening a Path2College 529 Plan account is a smart way to help prepare for a child's future higher education expenses.

Become an expert on 529 College Savings Plans. Your clients will thank you.


Tax advantages are with your client every step of the way.
With a Path2College 529 Plan account, any earnings in your client's account are free from federal income taxes when used for qualified higher education expenses. Then, when it's time for college, the money they withdraw for qualified higher education expenses is also tax-free.

Contributions and Earnings Used to Pay for Qualified Higher Education Expenses Are Federal and Georgia State Income Tax-Free
Contributions and earnings on any withdrawals used to pay for qualified higher education expenses will be free from federal and Georgia state income tax. This federal income tax-free treatment of qualified withdrawals and other federal tax benefits are permanently in place for 529 plans through the passage of the Pension Protection Act of 2006.

Georgia Income Tax Deduction
Effective with the 2007 tax year, all Georgia taxpayers may now contribute and deduct up to $2,000 each year on behalf of any beneficiary regardless of their annual income. Georgia taxpayers are not required to itemize deductions to make this adjustment to income.  Please note that a transfer of funds from another state's 529 plan is not eligible for the Georgia income tax deduction. Georgia tax forms refer to the Path2College 529 Plan as "Georgia Higher Education Savings Plan" (GHESP); the Path2College 529 Plan is established by the GHESP.

Contributions made during the tax year,or before the following year's federal tax filing deadline are eligible for the deduction. State tax benefits offered in connection with the Path2College 529 Plan are available only to Georgia taxpayers. You should consult with a qualified tax advisor regarding the application of Georgia state tax benefits to your particular circumstances. Recapture provisions may apply.

Federal Estate and Gift Tax Benefits
Contributions to the Path2College 529 Plan may reduce the taxable value of your client's estate. Contributions to the Path2College 529 Plan, together with all other gifts from the account owner to the beneficiary, may qualify for an annual federal gift tax exclusion of $12,000 per donor, per beneficiary for 2008. If an account owner's contribution to a Path2College 529 Plan account for a beneficiary in a single year exceeds $12,000, the account owner may elect to treat up to $60,000 of the contributions, or $120,000 for joint filers, as having been made over a period of up to five years for federal gift tax exclusion.

Read more about Path2College 529 Plan's  features:

Investment Options

Investment Performance

Learn why it's so important to start now.

 
 

WE'RE HERE TO HELP

Call us toll-free at
1-877-424-4377 to:

Meet with a Path2College 529 Plan program representative to learn more about the program.

Arrange a free Path2College 529 Plan seminar or webinar at your location.

Order Path2College 529 Plan Program Brochures (PDF, 34KB), table top signs and other promotional materials.

Remind your clients they can set up an Automatic Contribution Plan (PDF, 157KB) or use Payroll Deduction (PDF, 45KB) for their contributions (if offered by their employer) .

Authorization to access Path2College 529 Plan  Accounts. Get form here.

PDF files require the free Adobe Acrobat Reader. Get it here.

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The Path2College 529 Plan is offered by the State of Georgia. TIAA-CREF Tuition Financing, Inc. (TFI) serves as Program Manager. TFI's affiliates, Teachers Personal Investors Services, Inc. (TPIS) and TIAA-CREF Individual & Institutional Services, LLC, member FINRA, distribute the Path2College 529 Plan.

The tax information contained on the Path2College 529 Plan Web site is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding tax penalties that may be imposed on the taxpayer. It was written to support the promotion of the products and services addressed in the Web site. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor.

The investment approaches described are not recommendations and do not take into consideration personal goals or preferences. After evaluating information you consider important in making an investment choice, the ultimate decision is up to you. It is a good idea to revisit your investment strategy periodically as your goals, personal financial situation, and market conditions change.

Consider the investment objectives, risks, charges and expenses before investing in the Path2College 529 Plan. Please call toll-free 1-877-424-4377 for a Disclosure Booklet containing this information. Read it carefully.

Before investing in a 529 plan, you should consider whether the state you or your designated beneficiary reside in or have taxable income in has a 529 plan that offers favorable state income tax or other benefits that are only available if you invest in that state's 529 plan.

The State of Georgia, its agencies, TIAA-CREF Tuition Financing, Inc., Teachers Insurance and Annuity Association of America and its affiliates do not insure any account or guarantee its principal or investment return except for TIAA-CREF Life Insurance Company's guarantee to the Board of the Georgia Higher Education Savings Plan under the funding agreement for the Guaranteed Option. Account value will fluctuate based upon a number of factors, including general market conditions.

The Path2College 529 Web site is for informational purposes only, and does not constitute an offer to sell or solicitation of an offer to buy any security that may be referenced on the site. Such offer or solicitation can be made only through the Disclosure Booklet

The Path2College 529 Web site contains links to other Web sites. Neither the Board of the Georgia Higher Education Savings Plan nor TIAA-CREF Tuition Financing, Inc. and its affiliates are responsible for the content of those other Web sites. The accuracy of information on those sites cannot be confirmed.

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© 2008 TIAA-CREF Tuition Financing Inc.