Tuition Account Program (TAP)
Pennsylvania’s state-sponsored Tuition Account Program (TAP or TAP 529) is a tax-deferred investment plan that helps you save money toward the costs associated with higher education.
Benefits include:
- Funds have the potential to earn more while they’re in the account because of tax deferral.
- Flexible contribution options, minimal investment requirements, and large contribution/earning limits give you more savings alternatives.
- Investment choices include an investment plan option (with nine professionally managed portfolios and your choice of allocation based on factors such as beneficiary’s age or your risk tolerance) or a guaranteed savings plan option (with an account value that will keep pace with tuition increases).
- Withdrawals for qualified education expenses remain federally tax-free until 12/31/10.
- Withdrawals for non-qualified expenses are possible, also (visit their website for current guidelines).
- Account growth is exempt from state and local income taxes as well as the PA Inheritance Tax.
To enroll or get more information, visit www.pa529direct.com or call 1-800-440-4000.