As families face their financial situation each day, looking a month, a year, ten years or more down the road is often the last thing on their minds. However, with the April 15th tax deadline quickly approaching, Georgia residents have an opportunity to invest in their children’s future, and at the same time get a 2009 tax deduction.
The Path2College 529 Plan is a professionally managed and tax-advantaged way for families to save for college expenses, and Georgia taxpayers can receive a state income tax deduction of up to $2,000 per year, per beneficiary, regardless of their annual income. Georgia taxpayers are not required to itemize deductions to make this adjustment to income. Please note that a transfer of funds from another state’s 529 college savings plan is not eligible for the Georgia income tax deduction. The tax deduction is available for contributions to new accounts or to existing accounts.
The Path2College 529 Plan can be used to pay for college tuition and other qualified expenses, such as certain room and board costs, books and fees, and computer expenses for colleges in Georgia and nationwide. Any earnings in the Path2College 529 Plan are federal and state income taxdeferred, and withdrawals for qualified expenses are taxfree.*
“Tax time is the perfect time to begin thinking about budgets, investments and financial planning for the future,” said Chuck Penuel, director of the Path2College 529 Plan.
According to the U.S. Census Bureau, college graduates earn up to $1 million more than high school graduates over a lifetime.
The program web site offers more information and on-line enrollment at www.Path2College529.com; and the customer service center at 877-424-4377 (toll free) provides live college savings specialists who can walk people through the process.
“Once an account is set up, additional contributions can be made by check, periodic electronic funds transfer, or by using our Automatic Contribution Plan that allows parents to schedule regular monthly, bi-monthly or quarterly contributions,” said Penuel.