PA 529
Pennsylvania 529 with both guaranteed savings and investment plan options
How it works
PA 529 offers two distinct plans under one program: the Guaranteed Savings Plan (GSP), where contributions grow at the rate of tuition inflation with no market risk, and the Investment Plan (IP), with 26 Vanguard-managed portfolios including target enrollment date and static options. The GSP has had its asset-based fees waived for four consecutive years through June 2026. Over 190,000 families have saved more than $5.6 billion.
Is it right for you?
Consider if you
- You are a Pennsylvania resident wanting generous state tax benefits
- You want a guaranteed savings plan with zero market risk
- You want Vanguard-managed investment portfolios with Morningstar Gold rating
Skip if you
- Non-Pennsylvania residents who get no out-of-state tax benefit
- Investors wanting only aggressive growth and no guaranteed option
Your money and data
PA 529 is a state-sponsored 529 plan administered by the Pennsylvania Treasury Department with Vanguard as investment manager and Ascensus as record-keeper. Contributions may be deductible on Pennsylvania state taxes up to $19,000 per beneficiary (single) or $38,000 (joint). The Investment Plan offers age-based and static Vanguard portfolios.
Pros & Cons
Pros
- Guaranteed Savings Plan asset-based fees fully waived through June 2026
- PA state tax deduction up to $19,000/year per beneficiary (single)
- Investment Plan is Morningstar Gold-rated with 26 Vanguard portfolios
Cons
- GSP credits grow only at tuition inflation rate, not market returns
- No dedicated mobile app for account management
Pricing details
GSP: $0 asset-based fees (waived through June 2026) · IP: expense ratios from ~0.20% · $0 to open
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