Education Tax Saving Opportunity News

Federal & PA Laws

UTMA/UGMA ACCOUNTS AND FINANCIAL AID CALCULATION

UTMA/UGMA investments, which have been converted to 529 college savings plans, prepaid tuition plans or Coverdell Education Savings Accounts, will be considered an asset of the parent, not of the student for financial aid calculations.

Parental assets are includable in the financial aid calculation at no more than 5.64% of their value as opposed to student assets at a whopping 20%. That can make a big impact in qualifying for aid.

By moving those assets to a 529 plan, you may improve the chance your child will receive financial aid in the future.

PENNSYLVANIA TAX DEDUCTION FOR 529 COLLEGE SAVINGS PLAN

Pennsylvanians now have more reason than ever to invest in 529 College Savings Plans.

Pennsylvania taxpayers can take a state income tax deduction on contributions to 529 plans offered anywhere in the country of up to $15,000 a year, per parent (e.g. $30,000 per child per couple).

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