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Question for the Money Doctors

Question submitted on Aug 9, 2015.

Question

I want to fill application to fund my future grandchild (my son's child) college education. My son lives in CA state and I live in PA. Please let me know how to do this. Thanks

Answer

As a Pennsylvania resident, you are eligible for generous tax benefits if you contribute to a 529 College Savings account.  Contributions of up to $14,000 each year ($28,000 Married Filing Joint if each spouse has taxable income of at least $14,000) can be deducted from your Pennsylvania taxable income. Your grandchild does not have to be a resident, or even attend college in Pennsylvania for you to qualify for the deductions.  You do not have to open the account in Pennsylvania, you can participate in another state’s 529 program.

For enrollment and more information, check out www.pa529.com. 


For additional information visit http://www.360financialliteracy.org/

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