How does a 529 plan work Washington?
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The GET program is Washington’s 529 prepaid college tuition plan that helps families with young children save for future higher education expenses. The State of Washington guarantees that the value of your account will keep pace with the cost of college tuition, no matter how much it changes in the future.
What is the difference between educational savings account and 529?
The main differences between an ESA and a 529 plan are: Income Level Limit. You can only contribute to an ESA if your AGI is less than $110,000 per year for single filers ($220,000 for married couples filing jointly), but a 529 plan has no income restrictions.
What happens if you don’t spend 529 on education?
There is no penalty for leaving leftover funds in a 529 plan after a student graduates or leaves college. However, the earnings portion of a non-qualified 529 plan distribution is subject to income tax and a 10% penalty.
What is the max contribution to a 529 plan?
Annual 529 plan contribution limits 529 plans do not have annual contribution limits. However, contributions to a 529 plan are considered completed gifts for federal tax purposes, and in 2022 up to $16,000 per donor ($15,000 in 2021), per beneficiary qualifies for the annual gift tax exclusion.
How does an education savings account work?
Education Savings Accounts (ESAs) Those funds—which families generally access via an online platform—can cover private school tuition and fees, online learning programs, private tutoring, community college costs, higher education expenses and other approved customized learning services and materials.
What college savings plans are available in Washington State?
College Savings Plans Washington College Savings Plans The Guaranteed Education Tuition (GET) Program and the DreamAhead College Investment Plan are the state’s 529 college savings plans that help Washington families plan ahead for future college expenses. Both plans offer federal tax benefits and support families in reducing future college debt.
What are the benefits of a Washington State University get account?
Your GET account is guaranteed to keep pace with tuition and state-mandated fees at Washington’s highest priced public university. Your savings are not subject to the ups and downs of the stock market. The state guarantee is backed by the full faith and credit of the State of Washington.
What is Washington State’s guaranteed education tuition (get)?
In 1998, with the Legislature’s passage of Second Substitute House Bill 2430 and subsequent signature by Governor Gary Locke, Washington State’s Guaranteed Education Tuition (GET) program was created. GET is Washington State’s 529 prepaid college tuition program.
How many students have used the Washington Education Assistance Program (get)?
Since then, more than 57,000 students have used over $1.2 billion in GET benefits to help pay for qualified higher education expenses at colleges, universities, and technical schools nationwide and around the world. Here are just some of the features that have made GET a popular program for Washington families: