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College Savings Plans of Maryland -- Prepaid College Trust
The College Savings Plans of Maryland -- Prepaid College Trust offers a variety of tuition packages to Maryland and District of Columbia families.
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)
Did you know?
Residents are not limited to investing in their own state's plan. Another state may offer a plan that performs better and has lower fees. If there is no tax break offered for in-state investors ... shop around!
Also, the plan chosen does not affect which state the student enrolls in. An investor can live in NY, invest in a plan from NV and send a student to college in FL.
Enroll directly with the program.
College Savings Plans of Maryland
December 1, 2015 through April 20, 2016. Year round for newborns.
The account holder or beneficiary must be a Maryland or District of Columbia resident at the time of program enrollment.
U.S. citizens and resident aliens, UGMA/UTMA custodians, and legal entities organized in the U.S.
Beneficiaries must be in the 12th grade or younger at the time of program enrollment and must be enrolled for at least 3 years before they are eligible to receive tuition benefits. Benefits must start to be used within 10 years after the beneficiary's projected date of high school graduation, not including years spent in the U.S. military.
Prices for contracts purchased during the 2015-16 enrollment period range from as little as $4,585 for a one-year community college contract for a newborn to as much as $46,369 for a four-year university contract for a child in the ninth through twelfth grades.
One semester to four years at a Maryland public 4-year university, one or two years at a Maryland community college or a community/university combination (2 years of each).
The plan will pay the actual tuition up to either the weighted average tuition in the Prepaid College Trust plan purchased or the minimum benefit, whichever is greater. If the beneficiary receives a scholarship, grant, or tuition remission, the plan will pay any remaining tuition up to the scheduled benefit.
Lump sum, annual, monthly, and extended monthly installments with a downpayment option. The first payment for contracts purchased during the 2015-16 enrollment is due August 1, 2016.
Yes, the legislature is required to consider, but not necessarily approve, an appropriation to cover any shortfall, repayable within two years.
Fees & Expenses
$75 paper application or $50 with online application, reduced to $20 when purchasing additional years of tuition for the same beneficiary or enrolling a beneficiary with an account in the Maryland College Investment Plan.
Taxes and other Benefits
Contributions to the Maryland Prepaid College Trust of up to $2,500 per account per year are deductible in computing Maryland taxable income, with an unlimited carryforward of excess contributions. Only contributions made by the account owner are deductible. Rollover contributions are deductible if not previously deducted. Contribution deadline is December 31 postmark.
The principal portion of nonqualified withdrawals from this plan are included in Maryland taxable income to the extent of prior Maryland tax deductions. Rollovers are not subject to recapture.
Qualified distributions from Maryland and non-Maryland 529 plans are exempt.
Maryland follows federal tax-free treatment.
Does participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?
Under Maryland law, the right to benefits from the Prepaid College Trust is not subject to attachment, garnishment, or seizure by creditors.
Distributions & Terminations
Eligible educational institution or account owner, as directed by the account owner.
Accepts requests to transfer contract ownership ($10 fee).