{"id":131562,"date":"2024-06-07T22:47:01","date_gmt":"2024-06-08T02:47:01","guid":{"rendered":"https:\/\/www.thevalleyledger.com\/?p=131562"},"modified":"2024-06-07T22:47:01","modified_gmt":"2024-06-08T02:47:01","slug":"treasurer-stacy-garrity-senate-finance-committee-advances-bill-to-strengthen-pa-529-and-pa-able","status":"publish","type":"post","link":"https:\/\/www.thevalleyledger.com\/?p=131562","title":{"rendered":"Treasurer Stacy Garrity: Senate Finance Committee Advances Bill to Strengthen PA 529 and PA ABLE"},"content":{"rendered":"

HB 1745 will create employer tax credits for contributions to employees\u2019 529 and <\/em>ABLE accounts and provide tax-free rollovers from PA 529 plans to Roth IRAs<\/em>\u00a0<\/strong><\/p>\n

Harrisburg, PA\u00a0<\/strong>\u2014 Treasurer Stacy Garrity today commended the Senate Finance Committee for unanimously approving legislation which will give families even more reasons to invest in Pennsylvania\u2019s successful\u00a0PA 529 College and Career Savings Program<\/a>\u00a0and\u00a0PA ABLE Savings Program<\/a>.<\/p>\n

House Bill 1745<\/a>, sponsored by Rep. Paul Friel (D-26), will create tax credits for employers who provide matching contributions to their employees\u2019\u00a0PA 529<\/a>\u00a0and\u00a0PA ABLE<\/a>\u00a0accounts. The bill was also amended to allow excess funds in a PA 529 plan to be rolled over to a Roth IRA without any state taxes. That provision had been introduced in House Bill 2119, sponsored by Rep. Greg Scott (D-54) and Rep. Steve Samuelson (D-135).<\/p>\n

\u201cThis is great news \u2013 we\u2019re one big step closer to strengthening PA 529 and PA ABLE for Pennsylvania families,\u201d Treasurer Garrity said. \u201cGiving employers the option of receiving a tax credit for providing matching funds will give families more power to save while benefiting our great business community. This will also encourage more Pennsylvanians to save for the future with these great tax-advantaged programs, especially with the increased flexibility for PA 529 savings that this bill provides.\u201d<\/p>\n

\u201cGiven the ever-increasing cost of higher education and the need to ensure postsecondary education, in all its forms, is accessible and affordable, House Bill 1745\u2019s incentive for employers to support their employees’ educational goals will help alleviate some of the financial burden of education for both employees and their families,\u201d said Sen. Scott Hutchinson (R-21), chair of the Senate Finance Committee.<\/p>\n

\u201cThis bill would encourage more employers to match their employee contributions, giving our hardworking commonwealth employees more incentive to invest in the future,\u201d said Sen. Nick Miller (D-14). \u201cI have been an advocate for advancing educational opportunities for a long time, which will help develop our students into future leaders. I\u2019m not surprised by its bipartisan support, it is a bill that benefits both our businesses, our employees and most importantly, our students.\u201d<\/p>\n

\u201cThe PA 529 program has helped so many Pennsylvania families save for their child\u2019s or grandchild\u2019s future education,\u201d said Rep. Paul Friel. \u201cI\u2019m pleased that the PA 529 tax credit bill passed out of the Senate Finance Committee with bipartisan support.\u201d<\/p>\n

\u201cHB 1745 is a crucial step in addressing the skills gap and strengthening our workforce through better access to education,\u201d said Rep. Kristin Marcell (R-178), a strong supporter of the bill. \u201cBy providing a tax credit for employers who contribute to their employees’ PA 529 and PA ABLE accounts, we are not only supporting Pennsylvania families but also investing in a more skilled and educated workforce. I am proud to see this important legislation advancing with bipartisan support.\u201d<\/p>\n

As amended, HB 1745 will establish a 25 percent tax credit for employers who match up to $500 of employee contributions per participating employee per year. This would apply to matching contributions made to any 529 or ABLE account owned by a Pennsylvania resident.<\/p>\n

The bill also eliminates any state tax penalties associated with a PA 529 account in the event a beneficiary dies or becomes disabled.<\/p>\n

HB 1745 was also amended to clarify that state law will automatically conform to any future federal tax changes related to 529 accounts.<\/p>\n

HB 1745 is now before the full Senate for consideration. Treasurer Garrity thanked Sen. Hutchinson, Sen. Nick Miller, Rep. Friel, Rep. Marcell, Rep. Scott and Rep. Samuelson for their roles in advancing the legislation in a strong, bipartisan fashion.<\/p>\n

The PA 529 College and Career Savings Program helps families steadily and strategically save for future educational expenses like tuition, fees, books, equipment, room and board and more at qualifying technical, collegiate and apprenticeship programs. PA 529 plans also offer significant state and federal tax advantages, and saving with PA 529 does not impact Pennsylvania state financial aid eligibility.<\/p>\n

There are two options to invest with PA 529: the\u00a0PA 529 Guaranteed Savings Plan<\/a>, which allows families to save at today\u2019s tuition rates to meet tomorrow\u2019s tuition costs, and the\u00a0PA 529 Investment Plan<\/a>, which allows families to choose from a variety of investment options. The PA 529 Investment Plan received a Gold Rating from Morningstar in 2023, making it one of the top two 529 plans in the nation.<\/p>\n

The PA 529 program has been helping families save and pay for education for more than 30 years. There are currently almost 300,000 PA 529 accounts with assets of nearly $7.5 billion.<\/p>\n

Visit\u00a0pa529.com<\/a>\u00a0to learn more about the PA 529 College and Career Savings Program.<\/p>\n

PA ABLE (Achieving a Better Life Experience) accounts are a tax-free way for Pennsylvanians with disabilities, and their families, to save without affecting eligibility for important benefits.<\/p>\n

To learn more about PA ABLE, visit\u00a0paable.gov<\/a>.<\/p>\n

Information provided to TVL by:
\nSamantha Heckel<\/p>\n","protected":false},"excerpt":{"rendered":"

HB 1745 will create employer tax credits for contributions to employees\u2019 529 and ABLE accounts and provide tax-free rollovers from PA 529 plans to Roth IRAs\u00a0 Harrisburg, PA\u00a0\u2014 Treasurer Stacy … Continue reading Treasurer Stacy Garrity: Senate Finance Committee Advances Bill to Strengthen PA 529 and PA ABLE<\/span> →<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":120734,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[482],"tags":[],"class_list":["post-131562","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-press-release-2"],"jetpack_publicize_connections":[],"acf":[],"jetpack_featured_media_url":"https:\/\/www.thevalleyledger.com\/wp-content\/uploads\/2023\/07\/Pennsylvania-Treasury.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.thevalleyledger.com\/index.php?rest_route=\/wp\/v2\/posts\/131562"}],"collection":[{"href":"https:\/\/www.thevalleyledger.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thevalleyledger.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thevalleyledger.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thevalleyledger.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=131562"}],"version-history":[{"count":0,"href":"https:\/\/www.thevalleyledger.com\/index.php?rest_route=\/wp\/v2\/posts\/131562\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.thevalleyledger.com\/index.php?rest_route=\/wp\/v2\/media\/120734"}],"wp:attachment":[{"href":"https:\/\/www.thevalleyledger.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=131562"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thevalleyledger.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=131562"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thevalleyledger.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=131562"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}