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When it comes to saving money for college, there are many options available—each with their own set of benefits. The best option for you depends on multiple factors, like your savings goals, risk tolerance and investment preferences.
Path2College 529 Plan may check all the right boxes
529 plans are one of the most popular ways families choose to save for college. Other common methods include Roth IRAs or a standard bank savings account.*
Path2College 529 Plan
1 - Georgia state income tax deduction
- Limitations apply.
- Tax-deferred growth
- Tax-free withdrawals for qualified education expenses
- Investment options
- No income restrictions
- No age restrictions for withdrawals
- High annual contribution limits
Roth IRA2
- No state tax deductions
- Tax-deferred growth
- Potential tax-free withdrawals**
- Investment options
- Income restrictions
- Age restrictions for withdrawals
- Lower contribution limits
Bank Savings Account3
- No state tax deductions
- No tax-deferred growth
- No tax-free withdrawals
- No investment options
- No income restrictions
- No age restrictions for withdrawals
- High annual contribution limits
Moreover, money saved in a 529 does not disqualify students for financial aid. 529 assets are typically treated as belonging to the parent (or grandparent, etc.) and count less in Expected Family Contribution (EFC) calculations than assets held in the child’s name.
Learn more at https://studentaid.gov/ or check with the schools you are considering.
Why choose the Path2College 529 Plan
- Path2College 529 Plan offers a unique tax deduction to Georgia taxpayers—up to $8,000 per year, per beneficiary for joint filers or $4,000 for single filers.
- With an Path2College 529 Plan, any earnings during the years you are saving grow tax-deferred, which could mean more money accumulating in your account.
- Path2College 529 Plan savings do not disqualify students from financial aid and count less in Expected Family Contribution than assets held in the child’s name.4
Have any questions about ways to save for education? We have answers.
Path2College 529 provides a unique set of benefits that can mean more flexibility and growth potential, including:
- Tax-free qualified withdrawals
- Georgia state tax deduction
- Low fees and expenses
- Easy to choose investment options
- Favorable financial aid treatment
- Use for a wide range of education expenses and programs – in Georgia and around the world
Get more details and compare savings options.
No. Your Path2College 529 Plan funds can be used at any accredited university in the country—and even some abroad. This includes public and private colleges and universities, apprenticeships, community colleges, graduate schools and professional schools. Up to $10,000 annually can be used toward K-12 tuition (per student).1 Review a list of qualifying expenses and the state tax treatment of withdrawals for these expenses in the Plan Description.
Footnotes
- 1Withdrawals for tuition expenses at a public, private or religious elementary, middle, or high school and registered apprenticeship programs can be withdrawn free from federal and Georgia income tax. If you are not a Georgia taxpayer, these withdrawals may include recapture of tax deduction, state income tax as well as penalties. You should talk to a qualified professional about how tax provisions affect your circumstances. Apprenticeship programs must be registered and certified with the Secretary of Labor under the National Apprenticeship Act.↩
When you contribute to a Path2College 529 Plan account, any earnings are federal and Georgia income tax-deferred until withdrawn. Then, withdrawals used to pay for qualified education expenses are federal and state income tax-free.
Yes. Georgia taxpayers may be eligible for a Georgia income tax deduction on contributions made to a Path2College 529 Plan up to $8,000 per year, per beneficiary for joint filers or $4,000 for individual filers per year. You do not have to be the account owner or related to the beneficiary to take advantage of this deduction. Amounts transferred from another 529 college savings plan are not eligible for the Georgia state income tax deduction.
