Path2College 529 Plan

Effective with the 2007 tax year, all Georgia taxpayers may now contribute and deduct up to $2,000 each year on behalf of any beneficiary regardless of their annual income. Georgia taxpayers are not required to itemize deductions to make this adjustment to income. Please note that a transfer of funds from another state's 529 plan is not eligible for the Georgia income tax deduction. Georgia tax forms refer to the Path2College 529 Plan as "Georgia Higher Education Savings Plan" (GHESP); the Path2College 529 Plan is established by the GHESP.

Contributions made during the tax year, or before the following year's federal tax filing deadline (generally April 15th) are eligible for the deduction. State tax benefits offered in connection with the Path2College 529 Plan are available only to Georgia taxpayers. You should consult with a qualified tax advisor regarding the application of Georgia state tax benefits to your particular circumstances. Recapture provisions may apply.

Contributions and earnings on any withdrawals used to pay for qualified higher education expenses will be free from federal and Georgia state income tax. This federal income tax-free treatment of qualified withdrawals and other federal tax benefits are permanently in place for 529 plans through the passage of the Pension Protection Act of 2006.

Assets in the Path2College 529 Plan are not considered as an asset of the parent, guardian, or student for purposes of determining an individual´s eligibility for a need based grant, need based scholarship, or need based work opportunity offered or administered by any state agency except as may be required by the funding source of such financial aid.

Georgia's HOPE scholarship program pays for tuition, fees, and provides a book allowance for students who graduate with a "B" average from an eligible high school. Other qualification criteria may apply.

Contributions made to a Path2College 529 Plan account by April 15th can be used as tax deduction on the previous year's state tax return when the account owner otherwise qualifies for the deduction.