Georgia's Higher Education Savings Plan Tops $200 Million
|Tuesday, November 16, 2004||
Contact: Office of Communications 404-651-7774
ATLANTA, GA – Governor Sonny Perdue announced today that the Georgia Higher Education Savings Plan, Georgia’s Section 529 college savings plan, has reached the milestone of $200 million in program assets saved by participants to pay the costs of a college education.
“I have opened savings accounts in Georgia’s college savings plan for my three grandchildren, and I urge other parents and grandparents to open accounts for their loved ones,” said Governor Sonny Perdue. “Georgia’s college savings plan is one of the most successful programs in the country, and I hope that even more families will choose to participate.”
Georgia’s college savings plan, like the HOPE scholarship program, helps make higher education affordable for more Georgia families. Savings under the program can by used for expenses not covered by the HOPE scholarship, but unlike the HOPE scholarship, assets in Georgia’s college savings plan may be used at schools throughout the country and even at many schools outside the country.
Investment earnings in Georgia’s college savings plan grow free of federal and state taxes, and withdrawals are exempt from federal and state taxes when they are used to pay for qualified education expenses. With certain limitations, contributions may be deductible from Georgia taxable income up to a maximum of $2,000 per beneficiary. The state tax deduction is available every year, and contributions made by April 15th may be deducted on the preceding year’s return.
Under Georgia’s college savings plan, contributions to savings accounts can be made for a beneficiary (the eventual student) by a parent, grandparent, relative or others. The program offers five different investment options, and allows contributions until the account balance reaches $235,000. There is no separate annual cap on contributions.
The program offers a web site (www.GAcollegesavings.com) that provides complete information and includes an on-line enrollment feature. Information and applications can also be obtained through a customer service center at (877) 424-4377 (toll free). Accounts in the Section 529 college savings plan can be opened for as little as $25, and there are no income or residency restrictions on who can open an account.
For more information about Georgia’s Section 529 college savings plan, contact Chuck Penuel at (404) 463-0000 (email@example.com).