Georgia parents now have more incentive to save for college

Georgia parents now have even more incentive to begin saving for college.  As of yesterday fees associated with the Path2College 529 Plan dropped as much as 49%.  To date, Georgia parents have saved over a billion dollars for their children.

The Path2College 529 Plan is a state of Georgia program that helps 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. The plan is easy to use and understand, with no sign‐up, maintenance or third‐party sales fees – just a low annual asset-based management fee, and an account can be opened online with as little as $25.

The plan takes advantage of section 529 of the federal tax code that allows money invested for college to grow without having to pay taxes on the interest. Withdrawals used to pay college expenses, including books, fees and certain room-and-board costs are also tax free.
Contributions into the plan can be deducted from state income taxes, too (that's like getting a 6 percent subsidy for every dollar you spend).

Any earnings in the Path2College 529 Plan are federal and state income tax‐deferred and withdrawals for qualified higher education are federal and Georgia income tax free. In addition, the State of Georgia offers a state income tax deduction on contributions of up to $2,000 per year, per beneficiary. (Transfers from another 529 plan are not eligible for the deduction. Recapture provisions apply). Your account assets can be used at virtually any college or university in the country. The plan offers seven investment options and participants can arrange for automatic contributions to their accounts to be drawn directly from a bank account or made through payroll deduction with participating employers.

To help spread the word to other families, Path2College is sponsoring a summer reading program through public libraries. It also has a drawing underway for a newborn registered with the plan. Each prize is a $5,529 deposit into the account of the winners.
http://www.path2college529.com/