What is a GSP credit rate?

The GSP credit rate for eligible Pennsylvania state colleges (for Pennylvania residents) for the 2020-2021 enrollment period was $321.50 (or $3,858 for 12 credits or one semester).

How much can you contribute to PA 529?

Anyone age 18 or older can open a PA 529 IP account. You can contribute as little as $10 at a time, or as much as you want up to $511,758 per beneficiary, and make contributions whenever you want.

Are contributions to 529 plans tax deductible in PA?

Both plans offer generous tax and other benefits, including: Contributions are deductible from Pennsylvania state income tax (up to $15,000 per beneficiary for individuals; $30,000 per beneficiary for married couples filing jointly). PA 529 assets are exempt from Pennsylvania inheritance tax.

How much can you withdraw from a 529 plan per year?

Up to $10,000 annually per student, in aggregate from all 529 plans, can be withdrawn free from federal tax if used for tuition expenses at a public, private or religious elementary, middle, or high school.

How do I pay my PA 529 tuition?

Payments from a PA 529 GSP account may be made online or by mailing or faxing a form.

Can a 529 have two owners?

The short answer is yes — the same child can be the beneficiary of multiple 529 plan accounts. If several people — parents and two sets of grandparents, for instance — want to help fund a child’s education, they can either contribute to a single 529 account or set up separate plan accounts.

How do I report 529 contributions to PA?

Use PA-40 Schedule O to report the amount of deductions for contributions to Medical Savings or Health Savings Accounts and/or the amount of contributions to an IRC Section 529 Qualified Tuition Program by the taxpayer and/or spouse. Show money amounts in whole-dollars only.

How do I contribute to a PA 529 plan?

Please make the check payable to the appropriate plan and include the PA 529 account number and beneficiary’s name in the memo line. You may also contribute to a PA 529 account online using Ugift. Family and friends can also make a contribution by mail or online using Ugift.

Can you use PA 529 to pay student loans?

Under the SECURE Act of 2019, plan holders can use 529 plans to pay for tuition and qualified expenses of apprenticeship programs and can withdraw a lifetime maximum of $10,000 to pay down student loan debt.

Is rent a qualified 529 expense?

Can he use the 529 plan to pay for his portion of the rent, food and utilities? Yes, but not necessarily the full cost. As long as your son is enrolled at least half-time in a degree program, room and board qualify as eligible expenses to be covered by tax-free withdrawals from the 529 plan.