The 2015 tax filing deadline is just weeks away, but families still have time to take advantage of the state’s 529 plan and invest money for their child or grandchild’s education, while also reaping potential tax benefits on their 2015 state income tax return.
WHAT: Georgia residents who make a contribution to a Path2College 529 Plan before the tax deadline each year are eligible for a state income tax deduction on contributions of up to $2,000 per year, per beneficiary, regardless of their annual income. (Please note that a transfer of funds from another state’s 529 plan is not eligible for the Georgia income tax deduction. Recapture provisions apply.)
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 account may reduce the taxable value of the account owner’s estate. Consult your tax advisor.
WHEN: The deadline make a 2015 Path2College 529 Plan contribution is April 18, 2016.
HOW: To establish or contribute to a Path2College 529 Plan account, or for more information about the Path2College 529 Plan, visit www.Path2College529.com.
ABOUT: The Path2College 529 Plan was established by the state of Georgia in April 2002 to help families prepare for the future costs of college tuition and other qualified expenses, such as fees, books, and certain room and board costs for colleges in Georgia and nationwide. As of February 29, 2016, the Path2College 529 Plan has more than 133,000 beneficiaries with more than $1.8 billion invested for higher education expenses. Since the launch of the Plan, more than 29,000 families have withdrawn more than $462 million to pay for education-related expenses (as of 2/29/16).
Consider the investment objectives, risks, charges and expenses before investing in the Path2College 529 Plan. Visit www.path2college529.com for a Plan Disclosure Booklet containing this and other information. Please read it carefully.
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.
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.
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.