Funding Education for Seniors and Family in Georgia: Leveraging the 62+ Waiver and a 529 Plan
Key Takeaways
- Learn how Georgia’s 62+ Student Waiver (following certain criteria) allows seniors to attend any of the 26 public colleges and universities within the University System of Georgia.
- Discover how 529 plans operate, including specifics of Georgia’s state 529 plan.
- Explore the potential advantages of how Georgia seniors may use a 529 plan for their own non-tuition educational costs and then as a tax-deferred educational legacy.
A Method to Pursue Lifelong Learning and Leave an Educational Legacy
Saving for college doesn’t always have to mean putting money aside for students going from high school on to higher education. Georgia residents aged 62 and older may use the state’s 62+ Student Waiver and a Georgia 529 plan to fund their education and later (with a change of 529 plan beneficiary) that of a family member.
Let’s examine the components of this strategy, starting with the 62+ Student Waiver.
The Amendment 23 program—the 62+ Student Waiver
This policy mandates that legal residents of Georgia who are 62 years of age or older may attend any of the 26 public colleges and universities within the University System of Georgia tuition-free. This state program was instituted to foster lifelong learning for older adults who wish to complete a degree they never finished, pursue a new field of study, or take courses that interest them. Eligible senior students may enroll as degree-seeking undergraduates or graduate students, or they may choose to audit classes.
To qualify for the 62+ waiver, an applicant must fulfill these criteria:
- Must satisfy all standard undergraduate or graduate admission requirements for the specific university they wish to attend.
- Be a confirmed legal resident of the state of Georgia.
- Be at least 62 years of age at the time of registration for classes, verifying this via a birth certificate or driver’s license.
Note: While the program waives 100% of the standard in-state tuition costs, it is open to seniors on a space-available basis. Senior students must register for their classes immediately after the traditional student body has finalized their schedules so tuition-paying students aren’t excluded from high-demand courses. Specialized professional programs, such as dental, medical, veterinary, and law schools, are excluded from the waiver program.
How a 529 Plan Works
A 529 plan is a tax-advantaged savings vehicle. It is designed to help people save for education expenses. It gets its name via authorization by Section 529 of the Internal Revenue Code. 529 plans are sponsored by states, state agencies, or educational institutions. The plans’ unique tax treatment is based on contributions being made using post-tax dollars. Contributors get no immediate federal income tax deduction. Plan funds grow deferred from federal and state income taxes.
With a 529 plan (the type we will discuss is an education savings plan; there are also prepaid tuition plans), the account owner maintains control over the assets. The owner dictates how the funds are invested and when and to whom they are distributed.
Note: Anyone may open an account. They may fund it and name themselves as the primary beneficiary. They also may change the beneficiary later, choosing a qualified beneficiary, such as a child, grandchild, nephew, or other family member (it’s recommended to verify the IRS family definition when making this change).
Withdrawals are 100% state and federal tax-free. The funds must be spent on education expenses to be classed as qualified expenses (here we’re discussing college expenses; check with your Moore’s advisor on rules for public, private, and religious elementary and secondary schools).
529 funds can potentially be spent on these educational costs (check with your Moore’s advisor on other costs that may qualify):
- Undergraduate and graduate tuition and mandatory student fees.
- Books and required supplies unique to specific coursework.
- Computers and peripheral equipment needed for research or instruction.
- Room and board costs for students enrolled at least half-time. (Note: 529 funds for housing are capped at either the actual dorm bill or the college’s official ‘Cost of Attendance’ limit if you live off-campus.)
The Georgia Path2College 529 Plan
Every state administers its own 529 plans. In Georgia, the official plan is the Georgia Path2College 529 Plan. The standout feature for local residents is the state income tax deduction. Georgia taxpayers who contribute to the Path2College 529 Plan are eligible to deduct their contributions from their Georgia state income tax return. If you’re a single filer, you can deduct up to $4,000 per year, per beneficiary. Married people filing jointly are allowed to deduct up to $8,000 per year, per beneficiary.
Note: This deduction is highly flexible; often, a taxpayer does not necessarily need to be the account owner to claim the deduction, meaning multiple family members may contribute to an account and lower their respective state tax liabilities. There are some states that may not allow this or have special rules regarding contributions. We encourage you to review your situation and seek details from your Moore’s Wealth Management professional.
Contribution details: Contributions can begin with very small amounts, making it accessible for families of all economic backgrounds, while the maximum aggregate contribution limit per beneficiary is high. The aggregate limit (across all Path2College accounts for that beneficiary) currently sits at $550,000. After that limit is reached, new contributions aren’t accepted, but the balances can keep growing.
The minimum contribution to open an account is $25 and $15 per pay period is the minimum if you wish to make payroll deductions. You may also sign up for an Automatic Contribution Plan to deduct contributions from a bank account.
Key point: The ongoing benefit to Georgia is that its residents get a state income tax deduction every year they contribute to a Path2College account (up to the annual limits). That deduction lowers their Georgia taxable income year after year. The final spending location is flexible (Georgia 529 plan beneficiaries don’t have to attend college or other schools in the state) because of federal rules. The recurring tax break for contributors is what makes the plan attractive to Georgia taxpayers and encourages more local saving.
A Lifelong Learning Illustration: How a Tuition Waiver/529 Beneficiary Pivot Strategy Works
Step 1: By using The University System of Georgia’s cost savings to gain free tuition and paid mandatory fees combined with a Path2College 529 plan to pay for books, non-mandatory fees, and equipment, a senior who initially names themselves as their 529 plan beneficiary could conceivably pay all their college expenses without the need for student loans.
Step 2: The senior citizen could later change the 529 plan beneficiary designation to a family member (such as a child or grandchild). This would allow the senior to allocate the 529 plan funds for the family member’s educational expenses.
Let’s see how that could work in practice.
Taking Advantage of the 62+ Tuition Waiver
Consider a scenario involving a senior woman in her early 70s who is a resident of Georgia. She decides in her retirement that she wants to pursue a lifelong passion and earn a degree in history.
She applies to the University of Georgia as an undergraduate and fulfills the school’s entrance requirements. She meets the age requirement and also the ‘space availability’ requirement (she may register for her desired history classes if space is available), and UGA grants her the 62+ Student Waiver. The woman’s tuition and mandatory fees, such as technology, athletic, and activity fees, are covered by the waiver.
Note: The 62+ waiver program applies uniformly across all 26 public institutions governed by the University System of Georgia.
Key point: She still has to pay for non-mandatory costs, such as textbooks, a new laptop for research, online learning software, and supplies.
How She Uses the 529 Account That She Opened Years Ago
This woman had opened a Georgia Path2College 529 account, naming herself as both the account owner and the primary beneficiary. Each year, she contributed to this account, and as a Georgia taxpayer, she deducted up to $4,000 annually from her state income taxes for these contributions; earnings growth is tax-deferred. Her 529 account funds grew over time, sheltered from federal and state capital gains taxes.
Now that she is attending UGA, she may make tax-free withdrawals from her 529 account to pay for her textbooks, laptop, and software subscriptions, since these qualify as higher education expenses.
Changing the 529 Plan Beneficiary to Her Grandchild Later
Over time, the senior woman completes her coursework. Since her tuition costs were covered by the state’s 62+ waiver program, and she only used a small amount of her Path2College 529 account funds for books, tech costs, and software subscriptions, most of her 529 account continued to grow tax-free.
Her tax advisor mentioned that if she liquidated the account for a non-qualified expense, she would have to pay income taxes and a 10% federal penalty on the accumulated earnings. She contacted her 529 plan administrator and submitted a standard beneficiary change form. She removed herself as the designated beneficiary and officially named her grandson as the new beneficiary, which is allowed, as he fits the IRS definition of a qualified family member. The senior woman retained ownership and control over the funds.
As her grandson grew up, the money in the 529 account continued to grow tax-deferred. When he reached college age, she chose to disburse funds from this account to pay for his tuition, housing, and other qualified college costs. She was free to do so for his attendance at any accredited university in Georgia or elsewhere in the nation.
Recap: By strategic use of her Georgia 62+ Student Waiver and her 529 account, the woman:
- Lowered her own Georgia state income taxes during her working years.
- Funded her own retirement education costs.
- Successfully created a tax-deferred legacy for her grandson.
Note: While this scenario highlights one potential way to pass down wealth, changing the beneficiary to a grandchild is a generation-skipping transfer. This may require filing IRS Form 709 to track it against your lifetime limit; consult your Moore’s Wealth Management expert to see if using ‘superfunding’ rules to spread the gift reporting over five years may be applicable to your situation.
Most families will likely not owe any actual tax when making this beneficiary switch. The government lets you give away up to millions of dollars, total, over your lifetime completely tax-free (Check with your Moore’s Wealth Management professional on current exemption amounts.) However, if you transfer more than $19,000 at once, you must report it on your annual taxes. You still won’t owe money, but the IRS requires the paperwork to track it against your lifetime limit.
It is highly recommended to get professional guidance to navigate these tax disclosures and explore additional options, such as moving leftover funds into a tax-free Roth IRA.
Advanced Financial Considerations
To keep the withdrawals tax-free, the money must be spent in the same calendar year that the qualified education expenses were charged or paid.
Key point: Under the updated FAFSA framework, distributions taken from grandparent-owned 529 accounts no longer count as untaxed income for the student, eliminating a historical financial aid penalty.
Contact Moore’s Wealth Management for a Complimentary Retirement Consultation
Our discussion illustrated potential opportunities and complexities involved in retirement planning. Whether you seek to take advantage of Georgia’s 62+ Student Waiver and 529 plans or have questions about other retirement financial strategies, the experts at Moore’s Wealth Management can help guide you through savings and investment choices that align with your time horizon and risk tolerance.
We invite you to learn more about retirement planning solutions by contacting Moore’s Wealth Management for a free consultation. Call (770) 535-5000 or contact us online to schedule your appointment.
Resources
University of Georgia, Office of the Registrar. “62+ Program.” UGA.edu. n.d. Accessed August 13, 2026. https://reg.uga.edu/registration/62-program/.
Cauley, H.M. “Georgians 62 and older can take college classes for free.” AJC.com. April 29, 2021. Accessed August 13, 2026. https://www.ajc.com/classifieds/jobs/free-tuition-for-senior-seniors/Wht3gTUhy7STTc0Q2KIa2I/.
Internal Revenue Service. “529 Plans: Questions and answers.” IRS.gov. January 30, 2026. Accessed August 13, 2026. https://www.irs.gov/newsroom/529-plans-questions-and-answers.
U.S. Securities and Exchange Commission. “An Introduction to 529 Plans – Investor Bulletin.” Investor.gov. January 28, 2026. Accessed August 13, 2026. https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins/introduction-529-plans-investor-bulletin.
Path2College 529 Plan. “Grow their future with Georgia’s Path2College 529 Plan.” Path2College529.com. 2026. Accessed August 13, 2026. https://www.path2college529.com/.
Georgia Department of Public Safety. “Path2College (529 Plan).” DPS.Georgia.gov. n.d. Accessed August 13, 2026. https://dps.georgia.gov/path2college-529-plan.
Trull, Jeffrey. “529 Contribution Limits 2026: Maximums by State, Gift Tax Exclusion, and More.” Saving For College. July 23, 2026. Accessed August 13, 2026. https://www.savingforcollege.com/article/maximum-529-plan-contribution-limits-by-state.
Kim, Hyunmin. “Your 529 Questions, Answered.” Morningstar. June 1, 2026. Accessed August 13, 2026. https://www.morningstar.com/personal-finance/your-529-questions-answered-2.
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