529 PLANS

DC 529 College Savings Program (Advisor-sold)

District of Columbia

While DC's 529 College Savings Program is available to District of Columbia residents on a direct basis, on a national basis it is sold through advisors. The program features a menu of age-based and static portfolio options primarily utilizing Calvert mutual funds but with some other fund families as well. To find a financial advisor in your area, use the Directory of Financial Professionals.

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
5.28 3.36 2.50 2.60 0.35

Find an advisor

Enroll in DC 529 College Savings Program (Advisor-sold) through a financial advisor. Search our directory of qualified financial professionals to find one near you.

General

Program type:

Savings

How to enroll:

Enroll through a financial advisor. Find a Professional

Initial year of operation:

2002

State agency(ies):

District of Columbia College Savings Program Trust

Program manager:

Calvert Investment Management, Inc.

Program distributor:

Calvert Investment Distributors, Inc.

Manager contract term:

Through July 1, 2016, with options to extend for four 1-year periods.

Eligibility

State residency requirements:

None

Who can be a participant/owner in the program?

U.S. citizens and resident aliens of legal age, 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 the District of Columbia's 529 plan for the same beneficiary reach $260,000.

Minimum contributions:

With lump-sum contributions, the minimum initial contribution is $100, and the minimum subsequent contribution is $25. With the automatic investment plan, the minimum contribution level is $25 per month via bank transfer or $15 per pay period via payroll deduction.

Investment Options

Age-based investment options:

The Age-Based Option contains 5 portfolios of underlying funds. Contributions are placed into the portfolio corresponding to the beneficiary's age or as selected by the account owner, and later reassigned to more conservative portfolios as the beneficiary approaches college. Account owners have the option to freeze the account at any particular portfolio.

Static investment options:

Select among 6 individual-fund portfolios (Income, Balanced, Equity Index, U.S. Large Cap Equity, U.S. Small Cap Equity, and International Equity), and the Stability of Principal Investment Option.

Underlying investments:

Calvert and State Street mutual funds. The Stability of Principal Option consists of a funding agreement with Ameritas Life Insurance Company which guarantees principal and a minimum 3% annual rate of interest to the Trust.

Underlying fund allocations:

Click here, you need Microsoft Excel to open this document.

Investment performance link:

Click here to visit, link to the program website containing most current performance data.

Portfolio Fees & Performance Lookup

Click here to visit, pricing and performance details for each portfolio in each share class. Data can be plugged into FINRA's 529 Expense Analyzer.

Fees & Expenses

Enrollment or application fee:

None for D.C. residents, $25 for non-D.C. residents. Contributions are also subject to a sales charge that varies based on the particular portfolio and the amount invested.

Account maintenance fee:

$30, reduced to $15 for DC residents.

Program management fees:

0.15% management fee, including 0.05% administrative fee to D.C.

Expenses of the underlying investments:

Ranges from 0.40% to 0.94% (portfolio weighted average) in the age-based portfolios, 0.97% to 1.51% in the individual-fund portfolios, and 0.31% in the State Street Equity Index portfolio. None for the Ameritas Principal Plus portfolio.

Total asset-based expense ratio:

0.46% - 1.66%
Principal Plus option: 0.15%

Broker loads and commissions:

Maximum initial sales charge: 4.75% for the Age-Based 0-13 portfolios and all Equity fund options, 3.75% for the Age-Based 14-16 portfolios and the Bond fund option, and 2.75% for the Age-Based 17+ portfolio

Dealer: 4% commission for the Age-Based 0-13 portfolios and all Equity fund options, 3% commission for the Bond fund option, 3% commission for the Age-Based 14-16 portfolios, 2.25% commission for the Age-Based 17+ portfolio, and 0% commission for the Ameritas Principal Plus portfolio; up to 0.25 in annual trails beginning immediately

Breakpoint pricing:

For the Age-Based 0-13 portfolios and all Equity fund options, the sales load (dealer commission) breakpoints are as follows:
Less than $50,000 - 4.75% (4.0%)
$50,000 - $99,999 - 3.75% (3.0%)
$100,000 - $249,000 - 2.75% (2.25%)
$250,000 - $499,999 - 1.75% (1.25%)
$500,000 - $999,999 - 1.00% (0.80%)
$1 Million and over - 0.0% (0.0%)

For the Age-Based 14-16 portfolio and the Bond fund option, the sales load (dealer commission) breakpoints are as follows:
Less than $50,000 - 3.75% (3.00%)
$50,000 - $99,999 - 3.00% (2.25%)
$100,000 - $249,000 - 2.25% (1.75%)
$250,000 - $499,999 - 1.75% (1.25%)
$500,000 - $999,999 - 1.00% (0.80%)
$1 Million and over - 0.0% (0.0%)

For the Age-Based 17+ portfolio, the sales load (dealer commission) breakpoints are as follows:
Less than $50,000 - 2.75% (2.25%)
$50,000 - $99,999 - 2.25% (1.75%)
$100,000 - $249,000 - 1.75% (1.25%)
$250,000 - $499,999 - 1.25% (0.95%)
$500,000 - $999,999 - 1.00% (0.80%)
$1 Million and over - 0.0% (0.0%)

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

Yes

Taxes and other Benefits

Program match on contributions:

None.

State tax deduction or credit for contributions:

Contributions to the District of Columbia 529 plan of up to $4,000 per year by an individual, and up to $8,000 per year by married taxpayers who each make contributions to their own account, are deductible in computing District of Columbia taxable income, with a five-year carryforward of excess contributions. Only contributions made by the account owner are deductible. Rollover contributions are not deductible. Contribution deadline is December 31 postmark.

Value of in-state tax benefits:

Investment time horizon:
18 yrs (i.e. newborn): 0.38% annualized
10 yrs (i.e. 8-yr old): 0.69% annualized
2 yrs (i.e. 16-yr old): 3.50% annualized
Based on 8.95% DC tax rate. (For assumptions see 529 State Tax Calculator.)

State tax recapture provisions:

The principal portion of nonqualified withdrawals from this plan, and rollovers within two years of account opening, are included in District of Columbia taxable income to the extent of prior District of Columbia tax deductions. Nonqualified withdrawals for this purpose do not include withdrawals made as the result of the beneficiary's death or disability and withdrawals made on account of the beneficiary's receipt of a scholarship.

State tax treatment of qualified distributions:

Qualified distributions from District of Columbia and non-DC 529 plans are exempt.

State tax treatment of rollovers:

District of Columbia follows federal tax-free treatment except that outbound rollovers within two years of establishing the account are subject to the recapture of prior D.C. tax deductions.

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

No

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:

None.

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?

Yes

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

Program Disclosure Booklet

Contact

Web site:

Click here to visit

Telephone:

1-800-987-4859 (DC residents); 1-800-368-2745 (non-residents)

Telephone for broker use:

1-800-368-2746

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