Georgia families saving for college can now put away more money and pay less to do it, after two changes to the state’s Path2College 529 plan took effect today.
What’s happening: A law Gov. Brian Kemp signed in May raises the cap on how much a Path2College account can hold, from $235,000 to $550,000. The board that oversees the plan also voted to drop the state’s administrative fee, which had been cutting into account earnings.
What’s new: Before today, Georgia families hit a $235,000 ceiling on a single Path2College account and paid a state fee on their savings. Both of those are gone now.
What this means for you: Families saving for a child’s education can contribute more over time without running into a cap, and they’ll keep more of what they earn without the state fee taking a share. Contributions of up to $8,000 per year per child qualify for a Georgia state income tax deduction for joint filers; single filers can deduct up to $4,000 per year per child.
What a 529 plan is: A 529 is a savings account built for education costs. Money in the account grows without being taxed, and withdrawals are also tax-free as long as the money goes toward qualifying expenses. In Georgia, that covers traditional college tuition, technical college, some apprenticeship programs, K-12 private school tuition, and paying down certain student loans. You can open an account for a child, another family member, or yourself, and it takes as little as $25 to get started.
What they’re saying: “Our state is one of the best in the nation for both quality of higher education and affordability, and raising the 529 Plan limit helps ensure that remains so well into the future,” Kemp said. “By making it even easier for parents to save for their child’s college tuition, we’re strengthening the future of our state and its economy.”
The path forward: Families can open or add to a Path2College account at www.Path2College529.com or by calling (877) 424-4377.
B.T. Clark is an award-winning journalist and the Publisher of The Georgia Sun. He has 25 years of experience in journalism and served as Managing Editor of Neighbor Newspapers in metro Atlanta for 15 years and Digital Director at Times-Journal Inc. for 8 years. His work has appeared in several newspapers throughout the state including Neighbor Newspapers, The Cherokee Tribune and The Marietta Daily Journal. He is a Georgia native and a fifth-generation Georgian.
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- B.T. Clark
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- B.T. Clark
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