INVESTMENT PLAN - PA529

1 DISCLOSURE STATEMENTINVESTMENT PLANJANUARY 20161 SUPPLEMENT DATED MARCH 2018 TO THE PENNSYLVANIA INVESTMENT plan DISCLOSURE STATEMENT DATED JANUARY 2016 THE FOLLOWING INFORMATION DESCRIBES IMPORTANT CHANGES AND IS SUPPLEMENTAL TO THE PA 529 IP DISCLOSURE STATEMENT DATED JANUARY 2016. PLEASE KEEP THIS SUPPLEMENT WITH YOUR plan DOCUMENTS. THE FOLLOWING CHANGES WERE EFFECTIVE JANUARY 1, 2018. GENERAL CHANGES All references to Qualified Higher Education Expenses are changed to Qualified Education Expenses. All references to the range of SAGE discounts are changed from $8,500 to $49,542 to $10,500 to $53,505. SPECIFIC CHANGES The following replaces the fourth paragraph in Section on page 3: What are the tax advantages?

2 There are numerous federal and state tax advantages, which are described in more detail later in this Disclosure Statement. Briefly, the federal tax advantages are that the growth, if any, on contributions is tax-deferred and, if used for Qualified Education Expenses, is tax exempt. There are also specific federal gift and estate tax provisions and generation-skipping transfer tax advantages and consequences. For Pennsylvania taxpayers, the growth is tax deferred for state income tax purposes and, if used for Qualified Education Expenses, tax exempt. Additionally, within limits, contributions made into an Account may be deducted from your Pennsylvania taxable income. The following replaces the two paragraphs titled What schools and what expenses can an Account be used for?

3 In Section on page 4: What schools and what expenses can an Account be used for? An Account can be used to pay for Qualified Education Expenses required for enrollment or attendance at Eligible Educational Institutions. For ease of reference, these combined requirements are referred to throughout this Disclosure Statement as Qualified Expenses. The definition of Qualified Education Expenses differs depending on if the expenses are for Elementary and Secondary education or Post-Secondary education. Elementary and Secondary Qualified Education Expenses include only expenses for tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school and are limited to $10,000 per year per beneficiary.

4 It is the responsibility of the Account Owner to ensure that not more than $10,000 per year per beneficiary is withdrawn for Elementary and Secondary Qualified Education Expenses. Account Owners who are taxpayers in states other than Pennsylvania should note that those states may not 2 consider Elementary and Secondary education expenses to be qualified. Please consult with the individual state to learn more. Post-Secondary Qualified Education Expenses generally include: tuition, mandatory fees, required books, supplies and equipment, computers and peripheral equipment, computer software, Internet access and related services (as long as such equipment, software, and services are used primarily by the Beneficiary while enrolled at an Eligible Educational Institution), room and board, and special needs services for special needs students.

5 There are limitations and conditions in order for room and board to be a Qualified Expense. The Beneficiary must be at least a half-time student (generally taking six or more academic credits). If living on campus, the full amount charged by the school is a Qualified Expense. If living off-campus, the amount is limited to the room and board cost used by the school being attended in its cost of attendance calculation. Eligible Educational Institutions include any elementary or secondary public, private, or religious school and most American and many foreign colleges and universities, for undergraduate and graduate programs, and many career and trade schools. The determining criterion for Post-Secondary Schools is that the school must be eligible to participate in the Department of Education s student financial aid programs.

6 A search for such schools is available at by clicking on School Code Search. Withdrawals made to pay for Qualified Expenses are called Qualified Withdrawals. The following is added as Part on page 26 and all subsequent sections are renumbered accordingly: 6. Rollovers from a PA 529 IP Account to an ABLE Account a. How to Request You may withdraw assets from your PA 529 IP Account and place them in a previously established PA ABLE Savings Account or non-Pennsylvania ABLE account for the same Beneficiary as your PA 529 IP Account or a Family Member of the PA 529 IP Account Beneficiary ( ABLE Rollover ). Please note that you may not make an ABLE Rollover for an amount which, when added to all other contributions made to the ABLE account, exceeds the annual contribution limit for ABLE accounts ($15,000 for 2018).

7 Please read the PA ABLE Savings Program Disclosure Statement at or by calling 855-529-ABLE (2253) for more information. To make an ABLE Rollover, please call the PA 529 IP at 800-440-4000. b. Tax Consequences If an ABLE Rollover, when added to all other contributions made to an ABLE account, does not exceed the annual contribution limit for ABLE accounts ($15,000 for 2018), it is not a taxable event for federal and Pennsylvania income tax purposes. However, if the Beneficiary of the ABLE account is different than the Beneficiary of the PA 529 IP Account, it might be considered a gift from one Beneficiary to the other for federal gift and generation-skipping transfer tax purposes. Before making such a transfer, you may wish to consult with a tax advisor.

8 3 THE FOLLOWING CHANGES ARE EFFECTIVE APRIL 5, 2018: GENERAL CHANGES All references to the range of asset-based management fees are changed from to All references to the Operational Support Fee are changed from to All references to the $18 annual account maintenance fee are changed to $10. SPECIFIC CHANGES The following replaces the sub-section titled Role of PA Treasury in the section titled PA 529-AT A GLANCE on page 1: The PA 529 IP is administered by the Pennsylvania Treasury Department. The Department chooses the underlying Vanguard mutual funds and the allocations within the INVESTMENT Options, monitors INVESTMENT performance, and provides marketing and customer service for the plan . Pursuant to a contract expiring in 2023, the Pennsylvania Treasury Department serves as Program Manager, and Ascensus College Savings Recordkeeping Services, LLC ( Ascensus College Savings ) serves as Recordkeeping and Servicing Agent.

9 INVESTMENT management services are provided by The Vanguard Group, Inc. ( Vanguard ). See Part The following replaces the chart in Part on page 23: UnderlyingFund Expense State FeeOperationalSupport FeeTotal AnnualAsset-Based Fee1 year 3 years 5 years 10 yearsAggressive Growth $ $ $ $ Growth $ $ $ $ Moderate Growth $ $ $ $ Conservative Growth $ $ $ $ Income $ $ $ $ Conservative Income $ $ $ $ Interest Accumulation $ $ $ $ Total Stock Market Index $ $ $ $ Short-Term Inflation-Protected Securities $ $ $ $ Social Index $ $ $

10 $ Total International Stock Index Portfolio $ $ $ $ Total Bond Market Index $ $ $ $ Approximate cost of a $10,000investment assuming a 5% return4 The following replaces Part on page 23: b. Account Maintenance Fee The PA 529 IP charges an annual Account maintenance fee of $ to all funded Accounts that do not have a stop mail hold (see Part , above) which goes to the Department. This fee will be waived for those Accounts that have elected electronic delivery for all categories of items listed on the Edit Delivery Method page of the account access section of except the Tax Forms category (currently these are quarterly and annual account statements, PA 529 IP Disclosure Statement updates, and transaction and profile change confirmations).