December is top investment month for Path2College plan

ATLANTA — December is traditionally the busiest month for Georgians to open new Path2College accounts — in fact, more than 3,400 new accounts were opened and $86 million was contributed during last December alone. Today, Georgia’s Path2College 529 Plan has grown to more than $4.5 billion in savings and more than 219,000 accounts.

“The holidays are one reason the end of the year typically shows an increase in college savings,” Lynne Riley, president of the Georgia Student Finance Commission, said in a news release. “Gifting money to a 529 plan account is a popular holiday present and one that can grow with a child.

“Through the Georgia Path2College 529 Plan’s Ugift program, families can request and receive gifts that go directly to a child’s college savings. Contributing even $25 to a child’s college savings plan can change their mindset about saving and empower them by letting them know there is a plan to help them achieve their goals.”

The state of Georgia has seen an increase in gifting to its college savings plan overall. In the past year, more than 20,000 individuals received gifts to their college savings accounts.

While the 529 Plan is intended primarily as a savings and investment vehicle for college expenses, these funds may be used for K-12 tuition, apprenticeship expenses, and payment of qualified education loans. Since its inception in 2002, Georgia families have used more than $1.8 billion from their Path2College 529 Plan accounts to pay for education expenses.

Georgia taxpayers can invest in the Path2College 529 Plan for themselves, for children, siblings, grandchildren and friends. For those interested in the tax advantages of saving in the Path2College 529 Plan, contributions to the plan are deductible for Georgia income tax purposes up to $8,000 per year, per beneficiary, for those filing a joint return and up to $4,000 per year, per beneficiary, for those filing a single return. Any earnings on those contributions in the Path2College 529 Plan are federal and Georgia income tax deferred.

When it’s time to use 529 plan savings, withdrawals for qualified higher education expenses such as tuition, books, supplies and many other items are federal and Georgia income tax-free.

For more information about the Path2College 529 Plan or to open a college savings account, interested persons can visit www.Path2College529.com or call (877) 424-4377.

To learn more about Georgia’s Path2College 529 Plan, investment objectives, risks, charges and expenses, see the Plan Description at path2college529.com. Check with your home state to learn if it offers tax or other benefits such as financial aid, scholarship funds or protection from creditors for investing in its own 529 Plan.