If you want to save money for college expenses for your children or grandchildren, consider establishing a 529 Savings Plan account. It’s important to start saving for your children’s college education, and keep saving regularly in whatever amount you can afford. After all, every dollar saved for college now is one less you’ll have to borrow or spend in the future. With the Pennsylvania 529 Guaranteed Savings Plan (GSP), you can rest easily knowing that your savings will keep up with the rising cost of tuition.
The Pennsylvania 529 GSP can help you make college affordable by helping your savings keep pace with rising tuition costs. You can also cut your tax bill with important tax advantages and special benefits for Pennsylvania residents. Pennsylvania taxpayers can deduct contributions to their PA 529 GSP from their Pennsylvania taxable income up to $13,000 per Beneficiary per year. For married couples, contributions up to $26,000 per Beneficiary are deductible, provided each spouse has taxable income of at least $13,000.
Remember, the money you save for college in your PA 529 GSP account is federal and state tax-free while it remains in the account. And when used for qualified expenses, the growth in your child’s 529 account is not subject to federal or state income taxes.
Follow these tips to get into a lower tax bracket for the 2012 tax year and the succeeding years and you will notice a big difference in tax planning. To be sure you receive all of the benefits available, have Steger Gowie guide your steps to take regarding your tax status. Give us a call today and schedule an appointment with one of our Tax Specialists at (610) 335-1020.
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