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DC 529 College Savings Program (Direct-sold)
District of Columbia
The DC 529 College Savings Program (Direct-sold), available on a direct basis only to those who meet certain District of Columbia residency requirements, features a menu of age-based and static portfolio options primarily utilizing Calvert mutual funds. The program is available nationally through advisors at higher cost.
In Savingforcollege.com's latest quarterly rankings, this plan ranked in the top 10 for 1-year, 3-year, 5-year and/or 10-year performance.
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.
District of Columbia College Savings Program Trust
Calvert Investment Management, Inc.
Calvert Investment Distributors, Inc.
Through July 1, 2016, with options to extend for four 1-year periods.
The account owner must be a District of Columbia resident at the time of enrollment or work for a firm with over 300 employees that has payroll deduction for the DC College Savings Plan.
U.S. citizens and resident aliens of legal age, UGMA/UTMA custodians, and legal entities.
Accepts contributions until all account balances in the District of Columbia's 529 plan for the same beneficiary reach $260,000.
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.
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 age. Account owners have the option to freeze the account at any particular portfolio.
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.
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.
Click here, you need Microsoft Excel to open this document.
Click here to visit, link to the program website containing most current performance data.
Fees & Expenses
None for D.C. residents, $25 for non-D.C. residents.
$30, reduced to $15 for DC residents.
0.15% management fee, including 0.05% administrative fee to D.C.
Ranges from 0.48% to 1.02% (portfolio weighted average) in the age-based portfolios, 1.17% to 1.66% in the individual-fund portfolios, and 0.31% in the State Street Equity Index portfolio. None for the Ameritas Principal Plus portfolio.
0.46% - 1.81%
Principal Plus option: 0.15%
Taxes and other Benefits
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.
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.)
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.
Qualified distributions from District of Columbia and non-DC 529 plans are exempt.
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 participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?
Distributions & Terminations
Eligible educational institution, beneficiary, or account owner, as directed by the account owner.
Accepts requests to transfer account ownership.
Documents, Access & Reporting
D.C. residents who opt to use automatic deduction from a bank account may enroll online.
1-800-987-4859 (DC residents); 1-800-368-2745 (non-residents)