529 PLANS

DC College Savings Plan NEW! PDF ReportPRO

District of Columbia

The DC College Savings Plan is managed by Ascensus College Savings. Ascensus succeeded Calvert Investments as program manager in March 2017. The plan features a menu of age-based and static portfolio options utilizing investments from BlackRock, Vanguard, Loomis Sayles, JP Morgan, Dimensional Fund Advisors (DFA), Schwab, and Ameritas Life. The program was formerly sold nationally through financial advisors and on a load-waived basis to District of Columbia residents. The plan is now sold nationally on a direct-sold basis only.

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
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General

Program type:

Savings

How to enroll:

Enroll directly with the program. Enroll Now

Initial year of operation:

2002, changed substantially in 2017

State agency(ies):

District of Columbia College Savings Program Trust

Program manager:

Ascensus College Savings

Program distributor:

Ascensus College Savings

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 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 $500,000.

Minimum contributions:

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

Investment Options

Age-based investment options:

The Year of College Enrollment Option contains 7 portfolios of underlying funds. Contributions are placed into the portfolio corresponding to the beneficiary's anticipated year of enrollment or as selected by the account owner. Year of Enrollment Portfolios evolve from a heavier weight in equities in earlier years to a more conservative investment in fixed income instruments and other investments that seek capital preservation as the beneficiary approaches college.

Static investment options:

Select among 8 individual-fund portfolios each of which invests in a single underlying mutual fund or ETF and the Principal Protected Portfolio Option. The Principal Protected Portfolio consists of a funding agreement with Ameritas Life Insurance Company which guarantees principal return of principal and an annualized minimum rate of return of one percent (1.00%), minus any premium tax, if applicable.

Underlying investments:

BlackRock, Vanguard, Loomis Sayles, JP Morgan, Dimensional Fund Advisors (DFA), Schwab, and Ameritas Life.

Underlying fund allocations:

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Portfolio Fees & Performance Lookup

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See Investment Options

Fees & Expenses

Enrollment or application fee:

None

Account maintenance fee:

$15, reduced to $10 for DC residents.

Program management fees:

0.30% management fee (0.15% for Principal Protected Portfolio), including 0.05% administrative fee to D.C.

Expenses of the underlying investments:

Ranges from 0.02% to 0.06% (portfolio weighted average) in the age-based portfolios, 0.03% to 0.50% in the individual-fund portfolios. None for the Principal Protected Portfolio.

Total asset-based expense ratio:

0.32% - 0.80%
Principal Protected Portfolio: 0.15%

Taxes and other Benefits

Program match on contributions:

None.

State tax deduction or credit for contributions:

Contributions to the DC College Savings 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.

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?

Yes, with Upromise. The Upromise Rewards service is free to join and offers cash back for college.

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?

Yes

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

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Contact

Website:

visit Enroll Now

Telephone:

1-800-987-4859

Plan News

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