The benefits of a 529 account can help make your child's future brighter
Opening a 529 college savings account can be a smart way to save for your child's higher education.
The tax advantages, low fees and flexibility of our 529 account allows you to support your child's dreams for their future. Plus, you can easily invite family and friends to join the savings journey with Ugift®.
Remember: Every dollar saved today may be one less dollar borrowed in the future.
Triple tax advantages can help both you and your child
You could save more with a Path2College 529 account. Get tax-deferred growth and 100% tax-free withdrawals on qualified expenses. Plus, you may qualify for a state tax deduction up to $8,000 per beneficiary per year for married/joint filers for contributions made into a Path2College 529 account.
Limitations apply.1
How to maintain more of your potential growth
This chart illustrates the hypothetical growth of an initial $2,000 investment and a monthly $200 contribution over 18 years in a taxable account vs. a tax-deferred account, assuming a 7.28% annual return. Based on past performance and does not predict or guarantee future results. Click here for chart assumptions.
Taxable account at 18 Years Total: $75,498.91
100% tax-deferred account at 18 Years Total: $93,431.79
- Amount of taxes that could be saved: $17,932.88
Read about material differences between taxable investments and tax-deferred investments.
You have options for how you save and use your savings
Low fees
A Path2College 529 Plan has some of the lowest fees of 529 plans in the nation. That could mean more money toward your savings.2
Flexibility
Use savings for qualified education costs at eligible institutions in the U.S. or abroad—including tuition, housing, books and more. Unused funds never expire and can be used at a later time, or they can be transferred to an eligible family member or a Roth IRA (subject to rollover rules and limits).3
Investment options
Our experienced investment team provides access to diverse investment options to align with your investment strategy and preferred level of involvement all while keeping costs low.
Read more about investment options.
Strategic savings
Saving for education can feel overwhelming, but we're here to help. See how your contributions can add up with our tools designed to track your progress and highlight the impact of compound growth.
Learn how our 529 works.
Keep track of your education savings on the go
Open and manage your 529 account with the ReadySave™ 529 app.
- Monitor your savings progress and track your goals
- Check your account balance or investment allocations
- Easily make one-time or recurring contributions
- Invite family and friends to contribute with Ugift®
Have more questions about Path2College 529 benefits?
If your child ends up not needing the funds for college, you always have multiple options for your money:
- You can leave the funds in the account as there is no age limit or expiration date. For example, the choice to go to school might be a delayed decision for the intended child.
- You can transfer the funds to another eligible beneficiary, such as another child, a grandchild or even yourself.
- Up to $10,000 annually can be used toward K-12 tuition (per student).1
- Your 529 can be used for student loan repayment up a $10,000 lifetime limit per individual.1
- If you need to withdraw the funds for any reason, you can at any time. Earnings on funds withdrawn for a purpose other than qualified higher education expenses are subject to federal and state income tax and a 10% additional federal tax (known as the "Additional Tax"). See the Plan Description for more information and exceptions.
Footnotes
- 1Withdrawals for tuition expenses at a public, private or religious elementary, middle, or high school and student loans 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.↩
Your account will remain unchanged if you move. You do not need to be a resident of Georgia to open, contribute to or use a Path2College 529 Plan account. Your Path2College 529 Plan can be used for a range of qualified expenses in-state, out-of-state and abroad. If you move to another state, you can keep your money invested and continue making contributions to your Path2College 529 Plan account.
Assets in a parent-owned 529 account have less of an impact on financial aid than some other savings methods. Expected Family Contribution (EFC) calculations for financial aid generally factor parent assets outside of retirement savings at approximately 5%, whereas student assets are generally factored in at 20% or more. Therefore, a parent-owned 529 account may have less of an impact on financial aid eligibility than assets owned by the student.1
Footnotes
- 1The treatment of investments in a 529 savings plan varies by school. Assets are typically treated as the account holder's and not the student's. (Student assets are generally assessed at 20%, whereas parental assets are generally assessed at 5.6%.) Any investments, including those in 529 accounts, may affect the student's eligibility to get financial aid based on need. You should check with the schools you are considering regarding this issue.↩
A Georgia state plan has been the preferred choice for thousands of families for more than 21 years. With an established history, Georgians have opened more than 244,000 accounts and saved more than $5.7 billion in assets.1 Georgia selected TIAA-CREF Tuition Financing, Inc. (TFI) as the Path2College Plan Manager.
Footnotes
- 1Based on statistics provided as of 6/30/2024.↩
