News & Press Releases
Give loved ones the gift of education this holiday season
Atlanta – One state agency is hoping that instead of ordering a toy that will quickly be broken or forgotten, Georgians will instead consider giving the gift that keeps giving this holiday season – the gift of an education.
The state of Georgia’s college savings plan – Path2College 529 Plan – offers gift-giving options that include printable contribution gift certificates, as well as an eGift option where contributions can be made directly to an account online.
“Parents interested in building a college savings wish list instead of a toy list can create a custom invitation and send it to friends and family to let them know about this gift-giving option,” said Caylee Noggle, Interim President of the Georgia Student Finance Commission, which partners with the Office of the State Treasurer to administer the Path2College 529 Plan for the state of Georgia. “And, for those that want to give a contribution as a gift, a ‘Gift of Education’ certificate can be printed to show a contribution was made, and the account owner receives an email announcing the gift.”
Parents, grandparents, relatives and friends who are U.S. citizens or resident aliens and at least 18 years of age may open an account and/or contribute to a Path2College 529 Plan on behalf of a beneficiary.
“Studies have shown that children who have a college savings are more likely to continue their education, regardless of the amount saved” said Noggle. “Just knowing that there is something there for the future can make a huge difference. Our goal is to have as many children in Georgia as possible with a college savings so they have a strong financial foundation for their future.”
Contributions can be made and plans opened for as little as $25, and the plan is available for both children and adults.
“It’s a great gift for anyone who is planning to continue their education,” said Noggle. “A contribution to the state’s 529 plan provides tax advantages, as well.”
Georgia residents who make a contribution to a Path2College 529 Plan before the tax deadline each year are also eligible for a state income tax deduction on contributions of up to $2,000 for single filers and $4,000 for joint filers, per year, per beneficiary, regardless of annual income. (Please note that a transfer of funds from another state’s 529 plan is not eligible for the Georgia income tax deduction. Recapture provisions apply.) Any earnings in the Path2College 529 Plan are also federal and Georgia income tax-deferred and withdrawals for qualified higher education expenses, which may include tuition, fees, books, supplies and equipment required for enrollment, such as computers, internet access fees, software, or printers, are federal and Georgia income tax-free. Contributions made to a Path2College account may reduce the taxable value of the account owner’s estate. Please consult your tax advisor.
For more information about the Path2College 529 Plan or to open or contribute to a college savings account, please visit www.Path2College.com or call (877) 424-4377.
To learn more about the Path2College 529 Plan, its investment objectives, tax benefits, risks, and costs please see the Disclosure Booklet at path2college529.com. Read it carefully. Investments in the Plan are neither insured nor guaranteed and there is the risk of investment loss. Check with your home state to learn if it offers tax or other benefits such as financial aid, scholarship funds or protection from creditors only available for investing in its own 529 plan. Consult your legal or tax professional for tax advice, including the impact of the new federal tax changes. If the funds aren't used for qualified higher education expenses, a 10% penalty tax on earnings (as well as federal and state income taxes) may apply.
TIAA-CREF Individual & Institutional Services, LLC, Member FINRA and SIPC, distributor and underwriter for the Path2College 529 Plan.