Checklist for the T. Rowe Price College Savings Plan

The Savingforcollege.com 529 Selection Checklist is a simple tool designed to assist you in your research and selection of a 529 college savings plan. Before investing in a 529 plan, be sure to read the official program offering materials.

Steps:

1. Use a separate checklist for each 529 plan you are considering.
2. Use the "Notes" line to add any notes or thoughts you feel are relevant to that particular question. Information about the 529 plan being evaluated can be gathered from its official program disclosures, the plan web site, and third-party sources like Savingforcollege.com.
3. Use the "Acceptable, Unacceptable, or Not Important" checkboxes to indicate your conclusions as to how well the 529 plan you are evaluating meets the various criteria. Some criteria will not make any difference in your selection of your plan and should be noted as Not Important. In lieu of simply indicating acceptable or unacceptable you may want to develop a rating scale, e.g. 1 through 5.
4. Compare the checklists for the various 529 plans being considered and use the results to help you select the appropriate 529 plan.

Enrollment Issues:

Who is eligible to use this particular 529 plan?

U.S. resident individuals of legal age, UGMA/UTMA custodians, and legal entities organized in the U.S.

(  ) Acceptable (  ) Unacceptable (  ) Not Important

Notes: _______________________________________________________________________

How do I enroll: through a financial advisor (generally higher expense) or directly with the program (generally lower expenses)?

Enroll directly with the program.

(  ) Acceptable (  ) Unacceptable (  ) Not Important

Notes: _______________________________________________________________________

What, if any, age or time limits are imposed by this 529 plan that may restrict how long I can hold the plan?

None

(  ) Acceptable (  ) Unacceptable (  ) Not Important

Notes: _______________________________________________________________________

Can I complete the enrollment process for this 529 plan online (including funding the account)?

Yes

(  ) Acceptable (  ) Unacceptable (  ) Not Important

Notes: _______________________________________________________________________

Can I meet the plan's minimum contribution requirements either with a lump-sum contribution or by signing up for automatic contributions?

The minimum initial contribution is $250, and the minimum subsequent contribution is $50. With automatic monthly contributions, the minimum contribution is $50 per portfolio per month.

(  ) Acceptable (  ) Unacceptable (  ) Not Important

Notes: _______________________________________________________________________

Is the plan's maximum contribution limit high enough to accommodate my college funding desires?

The maximum account balance for a beneficiary across all portfolios and accounts is $550,000.

(  ) Acceptable (  ) Unacceptable (  ) Not Important

Notes: _______________________________________________________________________

Will this 529 plan allow my other relatives and friends to make contributions directly to my account?

Yes

(  ) Acceptable (  ) Unacceptable (  ) Not Important

Notes: _______________________________________________________________________

Program benefits:

If I live in the state offering this 529 plan, what are the state income tax deductions or credits I can claim for my contributions to it? (Note: If you live in Arizona, Kansas, Missouri, Maine, and Pennsylvania you do not have to use the in-state 529 plan to claim a deduction).

529 contributions are not deductible from federal taxes; state income tax treatment varies. For residents of one of the following states, contributions to the T. Rowe Price College Savings Plan may be deductible from state income taxes: Arizona, Arkansas, Kansas, Maine, Minnesota, Missouri, Montana, Ohio and Pennsylvania. This list is subject to change. Check with your state or with a tax professional for additional details and to determine what documentation, if any, is required when filing.

(  ) Acceptable (  ) Unacceptable (  ) Not Important

Notes: _______________________________________________________________________

If I live in the state offering this 529 plan, what matching contributions might I be eligible for?

None.

(  ) Acceptable (  ) Unacceptable (  ) Not Important

Notes: _______________________________________________________________________

If the state offering this 529 plan administers its own student financial aid programs, will my account in this plan be excluded for purposes of determining eligibility?

No

(  ) Acceptable (  ) Unacceptable (  ) Not Important

Notes: _______________________________________________________________________

If I prefer an investment that automatically changes to a more conservative asset mix as my child approaches college age, what "age-based" options are offered in this 529 plan?

The Enrollment-Based Portfolios contain 8 portfolios of underlying mutual funds, ranging from 100% equity to 20% equity. These portfolios' investments are aligned with a projected enrollment year and automatically shift as your target date approaches. 7 portfolios shift to a more conservative investment allocation over time, eventually transferring to the Portfolio for Education Today portfolio.

(  ) Acceptable (  ) Unacceptable (  ) Not Important

Notes: _______________________________________________________________________

If I prefer one or more investments that do not adjust over time, what "static" options are offered in this 529 plan?

Select among six Static Portfolio options. Unlike Enrollment-Based Portfolios, Static Portfolios do not change their investment mix over time.

(  ) Acceptable (  ) Unacceptable (  ) Not Important

Notes: _______________________________________________________________________

Which mutual fund families, or other investment managers, are utilized in this 529 plan? Do the investment options consist of a single fund family or a mix of fund families?

T. Rowe Price mutual funds.

(  ) Acceptable (  ) Unacceptable (  ) Not Important

Notes: _______________________________________________________________________

Does my preferred investment option in this program include foreign stocks, real estate, inflation-adjusted securities, or other sectors that I feel are desirable?

T. Rowe Price mutual funds.

(  ) Acceptable (  ) Unacceptable (  ) Not Important

Notes: _______________________________________________________________________

Which type of mutual funds does my preferred investment option use: actively managed funds or passively managed index funds?

Mix of actively managed and index funds

(  ) Acceptable (  ) Unacceptable (  ) Not Important

Notes: _______________________________________________________________________

What is my assessment of the quality of the particular investment options in this 529 plan?

Mix of actively managed and index funds

(  ) Acceptable (  ) Unacceptable (  ) Not Important

Notes: _______________________________________________________________________

How acceptable is the range of investment options in this 529 plan in the event I wish to change investment options in the future?

Mix of actively managed and index funds

(  ) Acceptable (  ) Unacceptable (  ) Not Important

Notes: _______________________________________________________________________

Fees and expenses:

How much is the enrollment fee in this 529 plan? Do I qualify for a waiver?

None.

(  ) Acceptable (  ) Unacceptable (  ) Not Important

Notes: _______________________________________________________________________

How much is the account maintenance fee in this 529 plan? Do I qualify for a waiver?

None

(  ) Acceptable (  ) Unacceptable (  ) Not Important

Notes: _______________________________________________________________________

What is the total asset-based expense ratio (or range of ratios) for the investment options in this plan?

0.16% - 0.87%

(  ) Acceptable (  ) Unacceptable (  ) Not Important

Notes: _______________________________________________________________________

How do the fees and expenses of this program compare to other 529 plans that offer investment options very similar to my preferred investment option in this program?

Underlying investments and expenses are very similar to those in Maryland's 529 plan.

(  ) Acceptable (  ) Unacceptable (  ) Not Important

Notes: _______________________________________________________________________

Other issues:

What are the special creditor protections for this 529 plan under the laws of the sponsoring state?

(  ) Acceptable (  ) Unacceptable (  ) Not Important

Notes: _______________________________________________________________________

Is this 529 plan linked into my favorite rewards service (e.g. Fidelity 529 College Rewards Card, Futuretrust, Upromise)?

Yes, the Upromise Rewards program can be linked to any 529 college savings plan. Upromise Rewards is free to join and offers members cash back for college.

(  ) Acceptable (  ) Unacceptable (  ) Not Important

Notes: _______________________________________________________________________

Will I have online access to my account for looking up my account values, etc?

Yes

(  ) Acceptable (  ) Unacceptable (  ) Not Important

Notes: _______________________________________________________________________

Who can I name as "payee" on distributions from this 529 plan? How easy is the process of requesting distributions?

Beneficiary and an eligible educational institution jointly, beneficiary, estate of the beneficiary, or account owner, as directed by the account owner.

(  ) Acceptable (  ) Unacceptable (  ) Not Important

Notes: _______________________________________________________________________

Will this 529 plan accept my request to transfer the account owenership to someone else?

Accepts requests to transfer account ownership.

(  ) Acceptable (  ) Unacceptable (  ) Not Important

Notes: _______________________________________________________________________

How thorough and understandable are the program's official disclosure materials, and how much help is available through the programs web site, call center, etc.?

Accepts requests to transfer account ownership.

(  ) Acceptable (  ) Unacceptable (  ) Not Important

Notes: _______________________________________________________________________

Are there any other considerations unique to this program that can be considered advantages or disadvantages?

Accepts requests to transfer account ownership.

(  ) Acceptable (  ) Unacceptable (  ) Not Important

Notes: _______________________________________________________________________

Before investing, be sure to read and understand the official program materials provided on the 529 plan's website.

Click here to visit

(  ) Acceptable (  ) Unacceptable (  ) Not Important

Notes: _______________________________________________________________________