HARRISBURG, PA — Pennsylvania has become the first state to allow contributions to state-administered education and disability savings programs through gift cards purchased with cryptocurrency, a move state officials say broadens funding options for PA 529 and PA ABLE account holders.
State Treasurer Stacy Garrity announced the initiative, which allows cryptocurrency and other digital assets to be used to purchase digital gift cards redeemable for contributions to Pennsylvania’s college and disability savings programs.
The program is being offered through a partnership between Pennsylvania Treasury, Gift of College and Bead, a digital payments network that enables businesses to accept digital assets while settling transactions in U.S. dollars.
The change allows parents, grandparents, relatives and friends to contribute to PA 529 College and Career Savings Program accounts and PA ABLE Savings Program accounts using either traditional currency or digital assets.
“I am incredibly proud that Pennsylvania is the first state in the nation to partner with Gift of College and Bead to offer PA 529 and PA ABLE savers the opportunity to use cryptocurrency to help them reach their financial goals,” Garrity said. “By expanding the way people can choose to save, we are making our programs more accessible and more flexible than ever before.”
The announcement represents a modernization effort for two state-sponsored savings programs that together serve families saving for future education costs and disability-related expenses.
PA 529 offers tax-advantaged savings for qualifying educational expenses, including college, technical training, apprenticeships, credential programs and certain K-12 costs. The program includes the PA 529 Guaranteed Savings Plan, which allows families to save at current tuition rates for future tuition expenses, and the PA 529 Investment Plan, which offers market-based investment options.
PA ABLE accounts allow Pennsylvanians with disabilities and their families to save for qualified disability-related expenses without affecting eligibility for certain public benefits.
According to the Treasury Department, contributions made through the gift card program may qualify for Pennsylvania state income tax deductions available to gift givers.
Jay Sykes, chief executive officer of Bead, said the partnership enables digital assets to be used for long-term savings goals.
“Making it possible to contribute to a child’s future using digital assets is exactly the kind of innovation that puts Pennsylvania ahead of the rest of the country,” Sykes said.
Wayne Weber, chief executive officer of Gift of College, said the program provides families with additional ways to contribute to education and disability savings accounts.
The cryptocurrency-funded gift cards follow another recent expansion of contribution options. Treasury recently introduced physical gift cards redeemable for PA 529 and PA ABLE accounts at Turkey Hill stores statewide and plans to add additional retail locations by the end of the year.
Since Garrity took office, the Treasury Department said it has reduced PA 529 and PA ABLE fees multiple times, resulting in more than $22 million in savings for participating families.
More information about the gift card program is available at pa529.com/gift and paable.gov/gift.
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