Latest fee cuts further enhance the Morningstar Gold-Rated PA 529 Investment Plan
Harrisburg, PA — Pennsylvania Treasurer Stacy Garrity today announced that fees are again going down for many PA 529 Investment Plan (IP) account owners. The new fee cuts implemented by Vanguard will save PA 529 IP account owners about $500,000 annually across the plan.
“This new fee cut enhances and highlights the affordability of our PA 529 Investment Plan,” Treasurer Garrity said. “Every reduction in fees is a boost to education savings. The PA 529 IP has been recognized time and time again as a best-in-class plan nationwide and has the confidence of account owners across Pennsylvania to help them save for their child’s future – no matter what career path they choose to follow.”
The PA 529 IP has 26 portfolio options to choose from, and the new fee reduction impacts 20 of these, including the target enrollment portfolios which automatically adjust asset allocations and risk as a child nears the anticipated age of enrollment. Fee reductions range from 0.04 to 4.00 basis points (.0004%-.004%) depending on the account owner’s portfolio selection.
Currently there are more than 214,000 PA 529 IP accounts, with over $7 billion saved for future education expenses.
The PA 529 IP has been a Gold-Rated 529 plan by Morningstar for the last three consecutive years – one of only two plans to achieve this nationwide. Morningstar recognized the PA 529 IP as a low-cost plan when compared to others and noted Treasury’s “strong stewardship and consistent execution,” and its ability to produce “favorable partner economics, formalized succession planning, and measured fee reductions, while expanding outreach, accessibility and participant research,” to further ensure consumer confidence in the PA 529 IP.
The PA 529 College and Career Savings Program helps families steadily and strategically save in a tax-advantaged way for a wide variety of qualifying technical, collegiate, apprenticeship, credential and K-12 educational expenses. Assets in a PA 529 account do not impact eligibility for Pennsylvania state financial aid.
The PA 529 program also offers the PA 529 Guaranteed Savings Plan (GSP), which allows families to save for tomorrow’s tuition prices at today’s rates.
Families with children born in 2019 and after can claim their child’s free $100 scholarship from Keystone Scholars to jumpstart education savings and open their own companion PA 529 account to continue saving on their own.
For more details about education savings with PA 529, visit pa529.com or call 800-440-4000.
Information provided to TVL by:
Steve Chizmar
