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NC 529 Plan

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Basic NC resident benefits

NC resident benefits

The NC 529 Plan features Vanguard funds in its three age-based options and nine individual options, as well as a federally-insured deposit option offered by the State Employees' Credit Union.

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NC 529 Plan

KEY METRICS

OVERVIEW

Program type

Savings

Inception

2001

State agency

North Carolina State Education Assistance Authority

Tax deduction

For single filers: None

For joint filers: None

Program manager

College Foundation, Inc.

Program distributor

College Foundation, Inc.

Manager contract term

MORE INFORMATION

Eligibility

State residency requirements:

None

Who can be a participant/owner in the program?

Individuals at least 18 years old, emancipated minors, UGMA/UTMA custodians, and legal entities .

Significant time or age restrictions imposed by the program:

None

Did you know?

  • 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.

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Contributions

Maximum contributions:

Accepts contributions until all account balances in the NC 529 plan for the same beneficiary reach $550,000.

Minimum contributions:

The minimum initial contribution is $25 and the minimum subsequent contribution is $25.

Does the program offer an e-gifting platform for receiving gift contributions?

By end of year 2022, the Plan will offer an online and mobile app gifting platform in partnership with Backer.com. The new robust gifting platform provides a unique gifting link for account owners to share with friends and family and allows gift-givers to save their own profile for recurring or future contributions. Account owners and gifters can make contributions using credit cards, Apple Pay, and Google Pay.

Investment Options

Investors in NC 529 Plan can select from the following investment options. Click on a portfolio name for more information.

The Vanguard Age-Based Option offers a choice among 3 different risk levels (Aggressive, Moderate, or Conservative). Contributions are placed into the portfolio corresponding to the selected risk level and number of years to expected enrollment, and later reassigned to more conservative portfolios until the beneficiary reaches age 19.
PortfolioE.R. % Equity1yr performance
Vanguard Aggressive Track (0-4) (Aggressive Growth)0.32%100%6.67%
Vanguard Aggressive Track (5-6) (87.5% Stock/12.5% Bond)0.32%100%6.36%
Vanguard Aggressive Track (7-8) (87.5% Stock/12.5% Bond)0.32%100%6.36%
Vanguard Aggressive Track (9-10) (Growth)0.32%75%6.24%
Vanguard Aggressive Track (11-12) (62.5% Stock/37.5% Bond)0.32%100%5.93%
Vanguard Aggressive Track (13-14) (Moderate Growth)0.32%50%5.64%
Vanguard Aggressive Track (15-16) (37.5% Stock/62.5% Bond)0.32%100%5.28%
Vanguard Aggressive Track (17-18) (Conservative Growth)0.32%25%5%
Vanguard Moderate Track (0-4) (87.5% Stock/12.5% Bond)0.32%50%6.36%
Vanguard Moderate Track (5-6) (Growth)0.32%75%6.24%
Vanguard Moderate Track (7-8) (62.5% Stock/37.5% Bond)0.32%50%5.93%
Vanguard Moderate Track (9-10) (Moderate Growth)0.32%50%5.64%
Vanguard Moderate Track (11-12) (37.5% Stock/62.5% Bond)0.32%50%5.28%
Vanguard Moderate Track (13-14) (Conservative Growth)0.32%25%5%
Vanguard Moderate Track (15-16) (12.5% Stock/87.5% Bond)0.32%50%4.66%
Vanguard Moderate Track (17-18) (Income)0.32%0%4.29%
Vanguard Conservative Track (0-4) (62.5% Stock/37.5% Bond)0.32%25%5.93%
Vanguard Conservative Track (5-6) (Moderate Growth)0.32%50%5.64%
Vanguard Conservative Track (7-8) (37.5% Stock/62.5% Bond)0.32%25%5.28%
Vanguard Conservative Track (9-10) (Conservative Growth)0.32%25%5%
Vanguard Conservative Track (11-12) (12.5% Stock/87.5% Bond)0.32%25%4.66%
Vanguard Conservative Track (13-14) (Income)0.32%0%4.29%
Vanguard Conservative Track (15-16) (50% Bond/50% Short-Term Reserves)0.31%25%3.89%
Vanguard Conservative Track (17-18) (25% Bond/75% Short-Term Reserves)0.31%25%3.4%
Vanguard Aggressive Track (19 or older) (12.5% Stock/87.5% Bond)0.32%100%4.66%
Vanguard Moderate Track (19 or older) (Income)0.32%0%4.29%
Vanguard Conservative Track (19 or older) (Interest Accumulation)0.3%0%3%

Age-based/Enrollment Year investment options:

The Vanguard Age-Based Option offers a choice among 3 different risk levels (Aggressive, Moderate, or Conservative). Contributions are placed into the portfolio corresponding to the selected risk level and number of years to expected enrollment, and later reassigned to more conservative portfolios until the beneficiary reaches age 19.

Static investment options:

Account owners can customize their investments by selecting among 5 multi-fund portfolios (Aggressive Growth, Growth, Moderate Growth, Conservative Growth, and Income) and four single-fund portfolios (Total Stock, Total International Stock, Total Bond, and Interest Accumulation) from Vanguard, and a federally-insured deposit account through State Employees' Credit Union.

Underlying investments:

The Vanguard Age-Based option offers a choice between Aggressive, Moderate or Conservative Tracks all of which invest in Vanguard mutual funds. The multi-fund and individual options invest in Vanguard mutual funds also.

Underlying fund allocations:

Portfolio Fees & Performance Lookup

Fees & Expenses

Enrollment or application fee:

None.

Account maintenance fee:

There are no account maintenance fees. If a participant chooses to receive paper statements and confirmations, rather than electronic, a fee of $1.50/month ($18.00/year) is charged to the account to cover printing, mailing, and other associated costs.

Program management fees:

0.25%

Expenses of the underlying investments:

Vanguard Age-Based Options: Ranges from 0.04% to 0.06%

Vanguard Individual and Multi-fund Options: 0.04% to 0.09%

Federally-Insured Deposit Account: None

Total asset-based expense ratio:

0.25% - 0.35%

Taxes and other Benefits

Tax deduction for single filers:

None

Tax deduction for joint filers:

None

Note:

North Carolina doesn't offer tax deductions

Program match on contributions:

None.

State tax deduction or credit for contributions:

None.

State tax recapture provisions:

N/A

State definition of qualified expenses

The state conforms with the federal definition of qualified education expenses, which includes expenses for higher education, apprenticeship programs, interest and/or principal on qualified education loans up to a $10,000 lifetime cap, and up to $10,000 per year in tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school. Distributions from a 529 account directly to a Roth IRA are considered a qualified expense for state income tax purposes.

State tax treatment of qualified distributions:

Qualified distributions from North Carolina and non-North Carolina 529 plans are exempt.

State tax treatment of rollovers:

North Carolina 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

Is there a rewards program or outside scholarship program that works with this 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.

Statutory protection of an account from creditors:

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.

NC 529 Plan
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Distributions & Terminations

To whom are distributions made payable:

Participant, designated beneficiary, or copayable to the beneficiary and eligible educational institution, as directed by the participant.

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:

Contact

Website:

https://www.cfnc.org/save-for-college/?utm_source=SavingForCollege&utm_medium=referral&utm_campaign=SavingForCollege

Telephone:

1-800-600-3453

Twitter

https://twitter.com/MyNC529

Social Media

https://www.facebook.com/NC529SavingsPlan

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