Pennsylvania 529 plan

Pennsylvania 529 Plan:

Program match on contributions: Match available for Pennsylvania low-income families (200% of the federal poverty level) participating in the Family Savings Account Program offered through the Pennsylvania Department of Community and Economic Development.

State tax deduction or credit for contributions: Contributions to any Pennsylvania or non-Pennsylvania 529 plan of up to $12,000 per beneficiary per year are deductible in computing Pennsylvania taxable income. Spouses filing jointly must each have at least $12,000 in income to claim the maximum $24,000 per-beneficiary deduction. Rollovers from another 529 plan or from qualified U.S. savings bonds are not eligible for the deduction.

State tax recapture provisions: Nonqualified distributions from any 529 plan are included by Pennsylvania taxpayers in Pennsylvania taxable income to the extent they are not a recovery of nondeductible contributions, following rules set forth in PIT Bulletin 2006-04. Rollovers are not subject to Pennsylvania tax.

Age-based investment options: The Age-Based Options offer a choice between three risk levels (Conservative, Moderate, and Aggressive) each containing five portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the beneficiary’s age, and later reassigned to more conservative portfolios as the beneficiary approaches college age.

Static investment options: Select among six multi-fund portfolios (Aggressive Growth, Growth, Moderate Growth, Conservative Growth, Income, and Conservative Income) and four individual-fund portfolios (Total Stock Market Index, Social Index, Inflation Protected Securities, and Money Market).

Single Funds- Expense Ratio 0.70%
 * Aggressive Growth Portfolio
 * Vanguard Total Stock Market Index Fund (85%)
 * Vanguard Total International Index Fund (15%)


 * Growth Portfolio
 * Vanguard Total Stock Market Index Fund (70%)
 * Vanguard Total International Index Fund (10%)
 * Vanguard Total Bond Market Index Fund (20%)


 * Moderate Growth Portfolio
 * Vanguard Total Stock Market Index Fund (55%)
 * Vanguard Total International Index Fund (05%)
 * Vanguard Total Bond Market Index Fund (40%)


 * Conservative Growth Portfolio (ER 0.70%)
 * Vanguard Total Stock Market Index Fund (40%)
 * Vanguard Total Bond Market Index Fund (60%)


 * Income Portfolio
 * Vanguard Total Stock Market Index Fund (20%)
 * Vanguard Total Bond Market Index Fund (80%)


 * Conservative Income Portfolio
 * Vanguard Total Bond Market Index Fund (50%)
 * Vanguard Inflation Indexed Bond Fund (25%)
 * Vanguard Prime Money Market Fund (25%)


 * Vanguard Total Stock Market Index Fund (100%)
 * Vanguard FTSE Social Market Index Fund (100%) (ER 0.75%)
 * Vanguard Inflation Indexed Bond Fund (100%)
 * Vanguard Prime Money Market Fund (100%)

Expenses: 0.70% - 0.75%


 * Direct Link to 529 Plan site
 * Plan document

Links

 * Morningstar Overview
 * State Creditor Protections for 529 Plans