Path2College 529 Plan

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Georgia’s Path2College 529 Plan lowers fees after hitting $3 billion in savings milestone

May 22, 2019

ATLANTA – Georgia families now have three billion reasons to save for college. The state’s college savings plan, the Path2College 529 Plan, recently hit the $3 Billion savings milestone, and that means reduced fees for families saving in the plan.

TIAA, who manages the Path2College 529 Plan, reduced its program management fee to .07 percent, down from 0.08 percent, effective May 1 in recognition of plan assets reaching $3 billion. The plan has no sales charges, enrollment fees, or other maintenance fees, making it among the lowest cost 529 college savings plan in the nation.1

“Education is crucial to ensure today’s children are tomorrow’s leaders,” said Governor Brian Kemp. “By providing Georgia families with valuable resources like the Path2College 529 Plan, we hope to make the goal of continued education attainable for every family and put students – not the status quo – first. This reduction in fees ensures more of Georgia families’ hard-earned money can go straight toward the cost of education.”

This reduction in fees is expected to save Path2College 529 Plan account owners approximately $300,000 annually.

As of March 31, 2019, the Path2College 529 Plan had more than 170,000 accounts and more than $890 million has been withdrawn to pay for education-related expenses. The Path2College 529 Plan was listed on Clark Howard’s Honor Roll, and it was rated in the “Top 10 Performing” by SavingforCollege.com.2,3

The Path2College 529 Plan, established in 2002, is Georgia’s tax-advantaged college savings plan families can use to help pay for higher education expenses such as tuition, fees, certain room and board costs, books, supplies, equipment required for college enrollment, and K-12 tuition. Families can invest in a Path2College 529 Plan for as little as $25. Savings from the plan can be used at virtually any accredited college in the United States and can be used for students seeking a technical college certificate or diploma, four year degree, or graduate degree.

Path2College 529 Plan contributions are deductible for Georgia income tax purposes up to $4,000 per year, per beneficiary for those filing a single return. Those limits double beginning January 1, 2020. Any earnings on those contributions in the Path2College 529 Plan are federal and Georgia income tax-deferred.

Withdrawals for qualified higher education expenses are federal and Georgia income tax-free. In addition, distributions from the Path2College 529 Plan for elementary and secondary school tuition are Georgia and federal income tax free up to a maximum of $10,000 a year per Beneficiary.

For more information about the Path2College 529 Plan or to open a college savings account, please visit www.Path2College529.com or call (877) 424-4377.

1A total of 51 plans are ranked by Strategic Insights; 529 College Savings Quarterly Fee Analysis, Second Quarter 2018.
2Clark Howard’s Honor Roll. Rating as of October 15, 2018
3Top Ten Performing Rating by Savingforcollege.com as of 9/7/2018.

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.

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