Path2College 529 Plan

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New Georgia law doubles tax deduction for Path2College 529 Plan

May 05, 2016

ATLANTA — Governor Nathan Deal signed legislation that will double the state tax deduction for families filing a join tax return for contributions made to the Path2College 529Plan. Beginning with returns filed in 2017, joint filers are eligible to deduct up to $4,000 per beneficiary, per year, giving families even more advantages to saving for education-related expenses. Contributions up to $2,000 per year, per beneficiary remain deductible for those who file single or head of household. (Limitations apply. Read the Disclosure Booklet carefully for details.) Contributions to the plan made before the tax deadline each year are eligible for a state income tax deduction regardless of annual income.

House Bill 802, which was sponsored by Representatives Sam Teasley (R-Marietta), was signed into law on May 3rd by Governor Nathan Deal.

“This new law will incentivize families to save even more for their children’s and grandchildren’s future educational expenses,” said Mitch Seabaugh, executive director of the Path2College 529 Plan. “We are grateful to the General Assembly and Governor Deal for this added benefit and hope that it will help more families save for college.”

Families filing jointly can begin taking advantage of the increased deduction on their 2016 taxes.

The Path2College 529 Plan allows families to save for education-related expenses by investing as little as $25. 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 and related technology such as internet access fees, software or printers, are federal and Georgia income tax-free. Contributions made to a Path2College 529 Plan account may reduce the taxable value of the account owner’s estate. Consult your tax advisor.

As of March 31, 2016, the Path2College 529 Plan has more than 134,000 beneficiaries with more than $1.9 billion invested for higher education expenses. More than 29,000 families have withdrawn more than $464 million to pay for education-related expenses.

For more information about the Path2College 529 Plan, visit

Consider the investment objectives, risks, charges and expenses before investing in the Path2College 529 Plan. Visit for a Plan Disclosure Booklet containing this and other information. Please read it carefully.

Before investing in a 529 plan, you should consider whether the state you or your 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.

Taxpayers should seek advice from an independent tax advisor based on their own particular circumstances. Non-qualified withdrawals may be subject to federal and state taxes and the additional 10% federal tax.

Account value for the Investment Options is not guaranteed and will fluctuate based upon a number of factors, including general market conditions.

TIAA-CREF Tuition Financing, Inc., Program Manager. TIAA-CREF Individual & Institutional Services, LLC, member FINRA, distributor and underwriter for the Path2College 529 Plan.


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