2003 Tax Deadline for Georgia 529 College Savings Plan
ATLANTA, March 30 /PRNewswire/ -- Georgia residents wishing to save for their
children's college education and reap a state income tax deduction in the
process are urged to open an account in the Georgia Higher Education Savings
Plan (GHESP), Georgia's state-sponsored 529 plan, before April 15th. GHESP
contributions of up to $2,000.00 per beneficiary may be deductible on 2003
Georgia state income tax returns, if the money is contributed beforeApril 15,
2004.
"Opening a Georgia Higher Education Savings Plan account is a win-win for
families and future college students," said Chuck Penuel, director of the Plan. "The GHESP creates education opportunities by making college more affordable, as
it reduces the tax burden on Georgia families." GHESP savings can be used for tuition and other qualified college expenses such
as room and board at any of Georgia's higher education institutions and at
colleges nationwide. "A college education can double a child's earnings
potential throughout his or her lifetime, making the benefits of a GHESP account
even more compelling," said Penuel.
According to the College Board, tuition at public and private colleges is
outpacing inflation, rising approximately 42 percent in the last decade alone. Opening a GHESP account before April 15th gives families the ability to take
advantage of long-term investing and tax benefits. The investment grows free
from federal and state income taxes.
Some of the features of GHESP: -- Tax-Free Earnings and Withdrawals -- Contributions to GHESP accounts
grow free from federal and state income tax. Through the power of
compounding, the money saved in a tax-deferred account can provide
greater potentialfor growth. And withdrawals used for qualified
expenses will be free of both federal* and Georgia** income tax.
-- Investment Options -- The GHESP offers families five investment
options: Guaranteed, Managed Allocation, Aggressive Managed Allocation,
100% Equity Fund, and a Balanced Fund Option.
-- Low Expenses -- The GHESP has low costs so more of your investment can
go toward education expenses. The low annual asset-based management fee
of 0.85% covers all expenses associated with the Plan.
-- Estate Benefits -- The GHESP offers generous federal gift and estate
tax advantages of up to $55,000 ($110,000 for married couples)
pro-rated over a five-year period for each beneficiary.
The program web site -- http://www.gacollegesavings.com/ -- provides complete
information and includes an on-line enrollment feature. Information and
applications can also be obtained through a customer service center,
1-877-424-4377 (toll free). There are no income or residency restrictions on who
can open an account.
For more information about Georgia's Section 529 college savings plan, contact
Chuck Penuel at 404-463-0000 or by email at .
* The law allowing federal tax-free qualified withdrawals is set to
expire on December 31, 2010. Congress may or may not extend the law
beyond this date. ** Withdrawals for qualified expenses are free of Georgia income tax after
the account has been open for one year.
TIAA-CREF Tuition Financing, Inc. is the program manager for the GHESP program
and investments are made by Teachers Personal Investors Services, Inc. as
distributor. For more information about a 529 plan, please read the particular
state's Disclosure booklet carefully. Principal and Investmentreturns are not
guaranteed or insured (except for the guarantee of TIAA-CREF Life Insurance
Company to the Board of Directors of the Georgia Higher Education Savings Plan
under the Guaranteed Option) and will fluctuate based upon a number of factors,
including general financial market conditions.
If you are not a Georgia resident or if you have taxable income in another
state, you should consider whether that other state plan offers a 529 plan with
favorable state income tax or other benefits that are not available if you
invest in the Georgia 529 plan. DATASOURCE: Georgia Higher Education Savings Plan CONTACT: Georgia Higher Education Savings Plan, 1-877-424-4377, or Chuck Penuel, +1-404-463-0000, Web site: http://www.gacollegesavings.com/
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