Paying for college can be overwhelming when saving for college hasn't been on your mind. Yet educational expenses are often the second largest family expense - second only to buying a home. And considering how thoughtfully you approached buying a home, it's just as important to find the best education savings plan or fund, no matter the age of your future collegiate.
It’s important to understand your savings options to make sure your account is helping you make the most out of your savings. Our Financial Advisors would be happy to sit down and look at your unique situation so you can save for the future with confidence.
Features and Benefits of 529 Plans1
- 529 Plans provide tax-free earnings growth on the balance of your account as long as your qualified distributions are made
- There are no income or age limits for a 529 Plan, making this a perfect option for non-traditional students
- There are no restrictions to the type of school where you can use the funds. They will be accepted at any accredited institution of higher education in the country and some foreign institutions, including universities, graduate schools and most community
It’s also important to note that 529 Plans are an investment account, meaning the balance can grow through return on investment. You can choose from 13 different investment portfolios, and your return is based on the performance of the underlying funds, which are comprised of stocks, bonds and other investments. Because it is an investment account, the account could lose its value. However, you can grow up to $368,600 over the life of the plan to put toward college expenses. There is no deadline to use the funds in a 529 Plan.
529 Plan Tax Information
In Pennsylvania, taxpayers can deduct contributions to a 529 Plan from their Pennsylvania taxable income up to $14,000 per Beneficiary per year. Earnings are not subject to yearly taxation for either federal or Pennsylvania income taxes while they remain in the account.
Get More Information
Download our College Funding Quick Guide. The Quick Guide will also include information about a Financial Advisor near you.
Investment and insurance products and services are offered through Osaic Institutions, Inc., Member FINRA/SIPC. First Commonwealth Advisors is a trade name of the First Commonwealth Bank. Osaic Institutions and First Commonwealth Bank are not affiliated. Products and services made available through Osaic Institutions are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.
1 An investor should consider, before investing, whether the investor’s or the designated beneficiary’s home state offers any state tax or other benefits that are only applicable for investment in such state’s qualified tuition program.