Salisbury Press

Thursday, December 5, 2019

Save for college, save on taxes

Wednesday, January 23, 2013 by CONTRIBUTED ARTICLE in Local News

State Rep. Justin Simmons, R-134th, is asking parents and grandparents who are thinking of starting a college savings account to consider the benefits of opening a Pennsylvania 529 College Saving Program.

"Opening a 529 plan is an investment in our future," Simmons said. "Considering the history of the cost of a college education, there's no better time than now to start saving toward a gift that will pay off down the road."

The PA 529 plan is designed to help savings grow to meet the future cost of education. When used for qualified higher education expenses, PA 529 Guaranteed Savings Program contributions grow at the rate of tuition inflation (subject to fees and premiums).

Family and friends can contribute up to $65,000 in a single year ($130,000 for a married couple filing jointly) for each beneficiary without incurring federal gift tax consequences (assumes no other gifts in the next four years).

For more information, or to open or contribute to an account, visit Simmons' website www. RepSimmons.com.