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CollegeBoundfund (Direct-sold, Alternative RI)
Rhode Island
This 529 savings program, available on a direct basis only to those who meet certain Rhode Island residency requirements, features a menu of age-based and static portfolio options utilizing AllianceBernstein mutual funds along with a stable value option. (The program is available nationally through brokers at higher cost.)
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General
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.
Program type:
Savings
How to enroll:
Enroll directly with the program.
Initial year of operation:
1998
State agency(ies):
Rhode Island Higher Education Assistance Authority
Program manager:
AllianceBernstein LP
Program distributor:
AllianceBernstein Investments
Manager contract term:
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Eligibility
State residency requirements:
The account owner or beneficiary must be a Rhode Island resident, or the account owner must work in Rhode Island, at the time of program enrollment.
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 $365,000.
Minimum contributions:
With lump-sum contributions, the minimum initial contribution is $250, and the minimum subsequent contribution is $50. With the automatic investment plan, the contribution level may be any amount.
Investment Options
Age-based investment options:
The Age-Based Portfolios option offers a choice between two risk levels. Each contains 7 age bands comprised of between seven and twelve 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 three multi-fund portfolios (Appreciation, Balanced, and Conservative), a stable value portfolio (Principal-Protection Income Portfolio), and ten individual-fund portfolios. A dollar-cost averaging option provides for automatic monthly reallocations between any of the portfolios.
Underlying investments:
AllianceBernstein mutual funds; one index fund (Vanguard Total Stock Market Index)
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
Account maintenance fee:
None
Program management fees:
0.06% for the Vanguard Total Stock Market Index Portfolio; variable for the other portfolios using AllianceBernstein funds
Expenses of the underlying investments:
0.20% in the age-based, approximate range 0.72% to 0.94% in the static multi-fund portfolios (portfolio weighted average), and 0.06% to 1.24% in the individual-fund portfolios.
Total asset-based expense ratio:
0.06% - 1.24%
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. Also, the CollegeBoundbaby program offers a $100 CollegeBoundfund starter account to new babies born or adopted in RI.
State tax deduction or credit for contributions:
Contributions to the Rhode Island 529 plan of up to $500 per year for an individual taxpayer, and $1,000 per year for married taxpayers filing jointly, 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:
Rhode Island law exempts qualified distributions from the Rhode Island 529 plan (via specific exclusion) and from non-Rhode Island 529 plans (via conformity to the federal tax exclusion).
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 request 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:
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Contact
Telephone:
1-888-324-5057
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