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CollegeBoundfund (Advisor-sold)

Rhode Island

While the Rhode Island CollegeBoundfund (Advisor-sold) 529 savings program is available to Rhode Island residents on a direct basis, on a national basis it is sold through brokers (unit classes A, B, and C) and fee-based planners (unit class R). Rhode Island residents purchasing through advisors can use lower-cost classes RA and RZ. The program features a menu of age-based and static portfolio options utilizing AllianceBernstein mutual funds along with a stable value option. To find a financial advisor in your area, use the Find a 529 Pro Directory.

5-Cap Rating

Resident:
Non-Resident:

Savingforcollege.com's 5-Cap Ratings provides an evaluation and comparison of 529 plans, utilizing a formula that examines dozens of factors grouped into the following categories. (Scale 0 to 5; 5 is highest)

Performance Costs Features Reliability Resident Upgrade
2.27 3.96 3.47 4.30 0.65

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General

Program type:

Savings

How to enroll:

Enroll through a financial advisor. Find a Professional

Initial year of operation:

1998

State agency(ies):

Rhode Island Higher Education Assistance Authority

Program manager:

AllianceBernstein L.P.

Program distributor:

AllianceBernstein Investments, Inc.

Manager contract term:

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Eligibility

State residency requirements:

None

Who can be a participant/owner in the program?

U.S. citizens and resident aliens, UGMA/UTMA custodians, and legal entities.

Significant time or age restrictions imposed by the program:

None

Contributions

Maximum contributions:

Accepts contributions until all account balances in Rhode Island's 529 plan for the same beneficiary reach $395,000.

Minimum contributions:

With lump-sum contributions, the minimum initial contribution is $1,000 ($25 for classes R, RA, and RZ), and the minimum subsequent contribution is $50 ($25 for classes R, RA, and RZ). With the automatic investment plan, the minimum contribution level is $50 per month (no minimum for classes R, RA, and RZ).

Investment Options

Age-based investment options:

The Age-Based Portfolios option offers a choice between 3 risk levels: Aggressive, Moderate and Conservative. An additional age-based option, the CBf Morningstar Index option seeks a balance of return potential and risk through investment in passively managed funds. Each contains 7 age bands comprised of 8-13 underlying mutual funds. Contributions are placed into the portfolio corresponding to the selected risk level and the age of the beneficiary. The portfolios shift to a more conservative investment allocation over time.

Static investment options:

Select among 3 multi-fund portfolios (Appreciation, Balanced, and Conservative), a stable value portfolio (Principal-Protection Income Portfolio), and 8 individual-fund portfolios. A dollar-cost averaging option provides for automatic monthly reallocations between any of the portfolios.

Underlying investments:

AllianceBernstein mutual funds.

Underlying fund allocations:

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Investment performance link:

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Portfolio Fees & Performance Lookup

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Fees & Expenses

Enrollment or application fee:

None, but contributions may be subject to a sales charge depending on share class.

Account maintenance fee:

$25 annually for accounts with less than $25,000, waived for Rhode Island residents, for accounts in the automatic contribution plan, and for unit class R.

Program management fees:

Management and administrative fees are included with the expenses of underlying investments (not disclosed separately by program manager). Distribution/servicing fees are 0.25% (Classes A, RA), 1.00% (Classes B and C), or 0% (Classes RZ and R).

Expenses of the underlying investments:

Ranges from 0.20% to 0.94% in the age-based and static multi-fund portfolios (portfolio weighted average), and from 0.50% to 1.03% in the individual-fund portfolios, inclusive of program manager fees.

Total asset-based expense ratio:

Class A: 0.70% - 1.28%
Class B: 1.55% - 2.03%
Class C: 1.45% - 2.03%
Class R (Fee-based): 0.45% - 1.03%
Class RA (RI-resident): 0.45% - 1.46%
Class RZ (RI-resident): 0.20% - 1.21%

Broker loads and commissions:

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Breakpoint pricing:

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Does breakpoint pricing include non-529 assets under rights of accumulation policies

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Taxes and other Benefits

Program match on contributions:

The CollegeBoundfund Matching Grant Program will match the applicant's contribution to a CollegeBoundfund account up to the first $500 contributed annually, subject to availability of funds. The applicant must meet the income guidelines established for the contribution year and provide verification of the familiy's adjusted gross income for the most recently completed tax year. For each year the individual is eligible, RIHEAA will match up to $500.00 of contributions made to the account for the beneficiary. Those eligible for the $2 for $1 level may receive a maximum annual matching award of $1,000.00.

State tax deduction or credit for contributions:

Contributions to the Rhode Island 529 plan of up to $500 per year by an individual, and up to $1,000 per year by married taxpayers filing jointly who each make contributions to their own account, are deductible in computing Rhode Island taxable income, with an unlimited carryforward of excess contributions. Only contributions made by the account owner are deductible. Rollovers from another 529 plan are not deductible. Contribution deadline is December 31.

Value of in-state tax benefits:

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State tax recapture provisions:

The principal portion of rollovers and nonqualified withdrawals from this plan within two taxable years of the contribution are included in Rhode Island taxable income to the extent of prior Rhode Island tax deductions.

State tax treatment of qualified distributions:

Qualified distributions from Rhode Island and non-Rhode Island 529 plans are exempt.

State tax treatment of rollovers:

Rhode Island follows federal tax-free treatment except that, in the two taxable years following the year of deduction, outbound rollovers are subject to the recapture of prior state tax deductions.

Does the sponsoring state exclude the value of an account for state financial aid purposes?

Yes

Does participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?

No

Does the program have a formal agreement with a rewards program or outside scholarship program?

No

Statutory protection of an account from creditors:

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Distributions & Terminations

To whom are distributions made payable:

Eligible educational institution, beneficiary, or account owner, as directed by the account owner

Account Changes

Policy regarding participant/owner changes:

Accepts requests to transfer account ownership.

Documents, Access & Reporting

Does participant have online password-protected access to account?

Yes

Can the complete enrollment process including funding be done online?

No

Documents and other services accessible or downloadable on the program's public Web site:

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Contact

Web site:

Click here to visit

Telephone:

1-888-324-5057

Telephone for broker use:

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