State Employee/Employer Information

State Employee/Employer Information

The Path2College 529 Plan (P2C) is Georgia’s Section 529 college savings plan.  Section 529 college savings plans offer parents and others a tax-advantaged way to save for a loved one’s future higher education costs.  House Bill 1118 from the 2004 session of the Georgia General Assembly allows state employees to have their Georgia 529 plan contributions payroll deducted. 

• As per federal law, 529 plan contributions must be made using after-tax dollars.  Therefore, employers do not have tax reporting requirements.
• Employees may establish an account using payroll deduction for as little as $15 per pay period.
• Employees may choose among seven investment options.
• Unlike your cafeteria benefits, the Georgia 529 plan is not subject to Section 125 restrictions.  Therefore, enrollment and changes may occur at any time during the year.
• Savings in the Georgia 529 plan grow tax-free, can be spent for higher education tax-free, and contributions up to $2,000 per beneficiary, per year are eligible for a Georgia state income tax deduction.
• The Georgia 529 plan is a great complement to the HOPE Scholarship as it can be used to pay higher education expenses that HOPE does not cover, and savings can be used at virtually any post-secondary school in the country and at many schools abroad.
• The Georgia 529 plan is an employee driven benefit; therefore, employees are responsible for completing the forms required for enrollment. 
• Employees are responsible for submitting payroll contribution changes (increases, reductions and terminations).