Governor Perdue Declares September College Savings Month

Governor urges Georgians to take advantage of state’s 529 Plan

  ATLANTA – For the fifth consecutive year, Governor Sonny Perdue has declared September as College Savings Month in Georgia, urging families to plan and save for their children’s education and take advantage of Georgia’s 529 college savings plan.  The savings plan allows for tax-free withdrawals for qualified higher education expenses such as tuition, room and board, books, fees and required equipment.

“A college education continues to be one of the most important things we can provide our children to prepare them for success,” said Governor Sonny Perdue.  “I encourage all Georgians to start saving as soon as possible to achieve the long-term goal of being less reliant on financial aid and loans to pay for college expenses.”

The Georgia 529 college savings program has enjoyed rapid growth since its launch in 2002, and surpassed $500 million in account assets earlier this year.  Money Magazine also recently rated Georgia’s 529 plan as one of the best in the nation, citing its low expenses and tax advantages for contributions.

Earlier this year, Governor Perdue signed House Bill 225 – legislation that makes all contributors to the Georgia 529 college savings plan eligible for the state income tax deduction. Previously, only a contributor who claimed the beneficiary as a dependent could take advantage of the state tax deduction.

The law also removes the previous income restriction, enabling all Georgia tax payers to take full advantage of the tax break – regardless of their income. Until now, to qualify for the state tax deduction Georgia 529 account owners had to have an adjusted gross income (AGI) of $100,000 or less for joint filers or $50,000 or less for single filers.

  “The recent improvements to Georgia’s 529 plan have made our strong college savings plan even more attractive,” said Chuck Penuel, director of the Georgia 529 Plan.  “We’re pleased to provide these enhancements, and we are working to provide account holders with even more options to reach their college savings goals.”

Georgia’s 529 college savings plan is administered by TIAA-CREF Tuition Financing, Inc. (TFI), a national leader in managing 529 college savings plans. The plan covers tuition and other qualified college expenses such as eligible room and board, books, and fees at colleges in Georgia and nationwide.

The Georgia 529 college savings plan currently has more than $530 million in assets and over 80,000 accounts.  For more information on the Georgia 529 plan, please visit: www.gacollegesavings.com or call toll-free 1-877-424-4377. Chuck Penuel may be reached at (404) 463-0000 or by email at chuckpenuel@otfs.ga.gov.