ATLANTA — According to Savingforcollege.com, Georgia’s Path2College 529 Plan was ranked in the top 10 for one-year and five-year returns and in the top 20 for three-year returns.
Savingforcollege.com also rates the Path2College 529 Plan as a five-cap plan, which indicates it “offers outstanding flexibility, attractive investments and additional economic benefits (such as generous state tax incentives) that for some people, at least, will provide a substantial boost to their savings. There are few, if any, weaknesses noted in the program,” according to a news release from Savingforcollege.com.
Additionally, the Path2College 529 Plan is rated above average by Morningstar, which provides stock-market analysis; equity and mutual-fund research; ratings and picks; portfolio tools; and option, hedge-fund, IRA, 401k and 529 plan research.
Mitch Seabaugh, director of Georgia’s Path2College 529 Plan, said these rankings reinforce that they are achieving their goal of providing a solid investment to those who choose to open a Path2College 529 Plan.
“This recognition should provide Georgia families encouragement in the quality of our state’s college-savings plan,” Seabaugh said. “Path2College provides an opportunity to help more families be financially prepared by saving for the cost of continued education for their children and grandchildren.”
As of Aug. 21, the Path2College 529 Plan had more than $1.1 billion in assets under management and more than 132,000 accounts. The Path2College 529 Plan is managed by TIAA-CREF Tuition Financing Inc., which is part of the TIAA-CREF group of companies.
The Path2College 529 Plan helps families prepare for the future costs of college tuition and other qualified expenses, such as fees, books and certain room-and-board costs for colleges in Georgia and nationwide. Account assets can be used at virtually any college or university in the country. The plan requires no signup, maintenance or third-party sales fees — just an annual asset-based management fee, and an account can be opened online with as little as $25.
Any earnings in the Path2College 529 Plan are federal and Georgia income tax-deferred and withdrawals for qualified higher education are federal and Georgia income-tax free. In addition, Georgia offers a state income-tax deduction on contributions of up to $2,000 per year, per beneficiary. Transfers from another 529 plan are not eligible for the deduction, and recapture provisions apply. The plan offers seven investment options and participants can arrange for automatic contributions to their accounts to be drawn directly from a bank account or made through payroll deduction with participating employers.
To learn more about the Path2College 529 Plan or to open a Path2College 529 college savings account, go to www.path2college529.com or call 877-424-4377.