Georgia increases 529 college savings limit, eliminates state administrative fee

Georgia is making its Path2College 529 savings plan easier and less expensive for families. Gov. Brian Kemp announced two changes this week: the maximum account balance limit will rise from $235,000 to $550,000, and Georgia will eliminate the state administrative fee. The higher limit was enacted through Senate Bill 556, which Kemp signed in May. Separately, the Georgia Higher Education Savings Plan Board approved waiving the fee, which officials say makes Path2College the lowest-cost 529 plan nationwide. The program allows tax-deferred earnings and tax-free withdrawals for qualified education uses, including college, technical school, certain apprenticeships, K-12 tuition, and eligible student loan repayment. Georgia also offers an income tax deduction for annual contributions up to $8,000 per beneficiary for married couples and $4,000 for single filers. Accounts can be opened with $25.