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Maryland 529  -- College Investment Plan logo

Maryland 529 -- College Investment Plan

The Maryland 529 -- College Investment Plan is a direct-sold 529 plan available to residents of any state, and offers investment options from T. Rowe Price. Maryland residents may enjoy a state tax deduction for contributions to the plan.

Our Ratingx

4 of 5

Fee Scorex

4 of 5

Performancex

2.5 of 5

  • Program typeSavings
  • Inception2001
  • State agency
    Maryland 529
  • Tax deduction
    Tax deduction for single filers $2,500/yr
    Tax deduction for joint filers $5,000/yr
  • Program Manager
    T. Rowe Price Associates, Inc.
  • Program distributor
    T. Rowe Price Associates, Inc.
  • Manager contract termUNLOCK PRO

Ratings & Rankings

Our overall rating for MD residents

This is an excellent program with many benefits for the participant and positive investment attributes. If it has any significant weaknesses then it also has some particularly good things to recommend it.

Our overall rating for non-residents

This is an excellent program with many benefits for the participant and positive investment attributes. If it has any significant weaknesses then it also has some particularly good things to recommend it.

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.


3.49of 5
top-ten

Each plan's performance score is developed directly from Savingforcollege.com's Quarterly 529 Performance Rankings. A 529 savings plan must have at least one year of performance history before they will be assigned a 5-cap rating. For those plans that are not part of our quarterly performance rankings, such as plans offering a single set of bank-based investment options, we assign a performance score by evaluating the returns currently available on similar types of investments outside of 529 plans.

Eligibility

State residency requirements:

None

Who can be a participant/owner in the program?

U.S. citizens and resident aliens, UGMA/UTMA custodians, and legal entities organized in the U.S..

Significant time or age restrictions imposed by the program:

None

Did you know?

  • MD residents can claim a tax deduction for contributions to a MD 529 plan.

    Contributions are deductible in computing state taxable income

  • 529 plan contributions grow tax-free.

    Withdrawals are tax-free when used to pay for qualified higher education expenses.

  • You can contribute as much as you want, as often as you want.

    The key is to get started. Enroll today by completing a quick form online.

Maryland 529  -- College Investment Plan logo

Contributions

Maximum contributions:

Accepts contributions until all account balances in Maryland's 529 plans for the same beneficiary reach $350,000.

Minimum contributions:

The minimum contribution requirements are a lump sum of $250 or, signing up for automatic monthly contributions of at least $25. The minimum for subsequent contributions is $25. .

Investment Options

Age-based investment options:

The Enrollment-Based Portfolios contain 8 portfolios of underlying mutual funds, ranging from 100% equity to 20% equity. Contributions are placed into the portfolio corresponding to the number of years to expected enrollment based on the age of the beneficiary or as selected by the account owner. 7 portfolios shift to a more conservative investment allocation over time, eventually transferring to the Portfolio for College.View more age-based investment options

Static investment options:

Select among 2 multi-fund portfolios (Equity Portfolio and Balanced Portfolio) and 4 individual-fund portfolios (U.S. Treasury Money Market Portfolio, Inflation Focused Bond Portfolio, Bond and Income Portfolio, and Global Equity Market Index Portfolio).View more static investment options

Underlying investments:

T. Rowe Price mutual funds.View a full list of this plan's investment options

Underlying fund allocations:

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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:

0.05% Trust Fee

Expenses of the underlying investments:

Ranges from 0.35% to 0.69% (portfolio weighted average).

Total asset-based expense ratio:

0.40% - 0.74%

Taxes and other Benefits

  • Tax deduction for single filers$2,500/yr
  • Tax deduction for joint filers$5,000/yr

Example

Married filing jointly residents contributing $100/month can expect an additional $0 a year in tax savings.

Program match on contributions:

Individuals who open or have opened a new Maryland 529 -- College Investment Plan after December 31, 2016, file an application prior June 1, 2018, and make at least the minimum contribution to the account, may receive a $250 or $500 contribution by the state. To be eligible, the beneficiary must be a Maryland resident. For account holders with Maryland taxable income of less than $87,500 (if filing state taxes for an individual) or less than $125,000 (for a married couple filing a joint state tax return) the state would contribute $500 per beneficiary. For account holders with Maryland taxable income of at least $87,500 but no greater than $112,500 for an individual or at least $125,000 but no greater than $175,000 for a married couple filing a joint return the state would contribute $250. You must make the minimum contribution of $25, $100, or $250, based on your household income, between July 1 and November 1. If you receive a state contribution for a beneficiary in a given year, you are not eligible in that year for the state income deduction for contributions that you made for that beneficiary.

State tax deduction or credit for contributions:

Contributions to the Maryland 529 -- College Investment Plan of up to $2,500 per beneficiary per year by an individual, and up to $5,000 per beneficiary per year by married taxpayers are deductible in computing Maryland taxable income, with a 10-year carryforward of excess contributions. Account owners and contributors are eligible for the deduction. Rollover contributions are deductible if not previously deducted. Contribution deadline is December 31 postmark.

State tax recapture provisions:

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.

State definition of qualified expenses

The state conforms with the federal definition of qualified education expenses, which includes expenses for higher education, as well as up to $10,000 per year in tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school.

State tax treatment of qualified distributions:

Qualified distributions from Maryland and non-Maryland 529 plans are exempt.

State tax treatment of rollovers:

Maryland follows federal tax-free treatment.

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, 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.

Upromise Helps Families Save for College

Upromise Helps Families Save for College

Statutory protection of an account from creditors:

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Did you know?

  • Residents are not limited to investing in their own state's 529 plan.

    Another state may offer a plan that performs better and has lower fees.

  • The 529 plan chosen does not affect which state the student enrolls in.

    You can live in New York, open a plan from Nevada and send a student to college in Florida.

  • The best way to maximize your college savings?

    Start early and save often. You can get started today with easy online enrollment.

Maryland 529  -- College Investment Plan logo

Distributions & Terminations

To whom are distributions made payable:

Beneficiary, beneficiary and eligible educational institution jointly, estate of 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,, initial funding may be completed online by signing up for automatic monthly contribution; an initial lump sum contribution requires the plan participant to send a check.

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

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Start saving for your child's future today


Step 1

Click the blue Enroll Now button to the right

Step 2

Complete the online application and make your first deposit

Maryland 529  -- College Investment Plan logo