There are so many great tax-saving reasons to open a 529 plan right away:
- Reduce your state taxable income up to $4,000
As a Georgia taxpayer, you could reduce your taxable income up to $4,000 per year per Beneficiary for those filing a joint return and up to $2,000 per year per Beneficiary for all others on your 2019 tax return if you contribute to a Path2College 529 Plan by July 15, 2020. Learn more.
- Withdraw funds tax-free for college expenses
Tuition, room and board, books, computers and more—funds in your Path2College 529 Plan account aren't taxed when spent on qualified expenses. (And they can be used at nearly any accredited university, college or vocational school nationwide – and many abroad!)
- Enjoy tax-free compound savings growth
With a Path2College 529 Plan account, your funds grow 100% free from federal and state taxes, unlike money kept in a savings account. And the sooner you start, the more you’ll have ready for college.
See the difference these tax advantages can make over time in the table below.
This example assumes an initial investment of $5,000, monthly contributions of $100, and a 6% annual rate of return over 18 years. The taxable account assumes a 28% federal and 5% state tax rate. The illustration is for illustrative purposes only and does not represent the performance of any specific portfolio.