Georgia increases 529 college savings limit, eliminates state administrative fee
Georgia is making it easier and less expensive for families to save for college and other education costs.
Gov. Brian Kemp highlighted two updates to Georgia's official college savings program this week, including an increase in the maximum account balance from $235,000 to $550,000 and the elimination of the state administrative fee.
The higher account limit is part of Senate Bill 556, which Kemp signed into law in May. Separately, the Georgia Higher Education Savings Plan Board approved waiving the state administrative fee. State officials say that makes Georgia's Path2College 529 Plan the lowest-cost college savings plan in the nation.
"Our state is one of the best in the nation for both quality of higher education and affordability, and raising the 529 Plan limit helps ensure that remains so well into the future," Kemp said in a statement.
Georgia's Path2College 529 Plan allows families to save for qualified education expenses with tax-deferred earnings and tax-free withdrawals. Funds may be used for college, technical schools, certain apprenticeship programs, K-12 tuition and qualified student loan repayment.
State Treasurer Steve McCoy said the new changes are intended to help families save more while reducing costs.
"By increasing the account balance limit and waiving the state administrative fee, we are reinforcing our commitment to helping families meet their long-term education goals," McCoy said.
The plan also offers a Georgia state income tax deduction on annual contributions of up to $8,000 per beneficiary for married couples filing jointly and up to $4,000 per beneficiary for single filers. Accounts can be opened with as little as $25.
