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CollegeBound 529 (Advisor-sold)

Rhode Island's CollegeBound 529 savings program is managed by Ascensus College Savings with Invesco Advisors, Inc. as investment manager. The plan is sold through brokers (unit classes A, AR, and C) and registered investment advisors (unit class I). Rhode Island residents purchasing through advisors can use lower-cost classes RA and RZ. The program features a menu of age-based and static portfolio options utilizing Invesco funds. Accounts can be linked to the Upromise rewards service. To find a financial advisor in your area, use the Directory of Financial Professionals.

Our Ratingx

4 of 5

Fee Scorex

4 of 5

Performancex

N/A

  • Program typeSavings
  • Inception1998, substantially changed in 2016.
  • State agency
    General Treasurer of Rhode Island
  • Tax deduction
    Tax deduction for single filers $500/yr
    Tax deduction for joint filers $1,000/yr
  • Program Manager
    Ascensus College Savings
  • Program distributor
    Invesco Distributors
  • Manager contract termUNLOCK PRO

Ratings & Rankings

Our overall rating for RI residents

This is a program that offers outstanding flexibility, attractive investments, and additional economic benefits (such as generous state tax incentives) that for some people, at least, will provide a substantial boost to their savings. There are few, if any, weaknesses noted in the program.

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.


1.49of 5

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.

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 $395,000.

Minimum contributions:

None

Investment Options

Age-based investment options:

The Age-Based Portfolios option contains 11 age bands corresponding to expected dated of college enrollment. The asset mix (or allocation) of the Age-Based Portfolios shifts to a more conservative investment allocation over time.View more age-based investment options

Static investment options:

Select among three Target-Risk Portfolios (Growth, Moderate and Conservative), and 11 individual-fund portfolios.View more static investment options

Underlying investments:

Invesco mutual funds and ETFs.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, but contributions may be subject to a sales charge depending on share class.

Account maintenance fee:

$20 annually for accounts with less than $25,000, waived for Rhode Island residents, and for accounts in the automatic contribution plan.

Program management fees:

0.17% (includes 0.02% state administrative fee), plus distribution/servicing fee of 0.25% (Class A), 1.00% (Classes AR and C), or 0.00% (Class I). None for Class RA.

Expenses of the underlying investments:

Ranges from 0.39% to 0.50% in the age-based and target-risk portfolios (portfolio weighted average), and from 0.16% to 0.90% in the individual-fund portfolios.

Total asset-based expense ratio:

Class A: 0.58% - 1.32%
Class AR: 1.33% - 2.07%
Class C: 1.33% - 2.07%
Class RA (RI-resident): 0.41% - 1.15%
Class RZ (RI-resident): 0.16% - 0.90%
Class I: 0.33% - 1.06%

Broker loads and commissions:

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Breakpoint pricing:

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Does breakpoint pricing include non-529 assets under rights of accumulation policies

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Taxes and other Benefits

  • Tax deduction for single filers$500/yr
  • Tax deduction for joint filers$1,000/yr

Example

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

Program match on contributions:

Children born to or adopted by Rhode Island families are eligible for a $100 "CollegeBoundbaby" grant to be used for Qualified Expenses if the request is received by the Treasurer within one (1) year of their birth or adoption.

State tax deduction or credit for contributions:

Contributions to the Rhode Island 529 plan of up to $500 per year by an individual, and up to $1,000 per year by married taxpayers filing jointly are deductible in computing Rhode Island taxable income, with an unlimited carry forward of excess contributions. Rollovers from another 529 plan are not deductible. Contribution deadline is December 31.

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 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 Rhode Island and non-Rhode Island 529 plans are exempt.

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?

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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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?

No

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

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Contact

Website:

https://www.invesco.com/college-bound-529-plan/?ivz_campaign=collegebound-529&ivz_source=vanityurl&ivz_content=collegebound-529-com

Telephone:

1-877-615-4116

Telephone for broker use:

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