NextGen College Investing Plan -- Client Select Series NEW! PDF ReportPRO

General

Program type:

Savings

How to enroll:

Enroll through a Merrill Lynch Financial Advisor or certain other Maine distribution agents. Find a Professional

Initial year of operation:

1999

State agency(ies):

Finance Authority of Maine (FAME)

Program manager:

Merrill Lynch, Pierce, Fenner & Smith Incorporated

Program distributor:

Merrill Lynch

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 at least 18 years old, 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 529 plans for the same beneficiary reach $475,000.

Minimum contributions:

The minimum initial contribution is $25, which may be waived for Maine residents eligible for certain Maine grants. With the automatic investment plan, there is no initial contribution amount required but subsequent automated contributions must be at least $25 per month.

Investment Options

Age-based investment options:

Four age-based options are offered, each using a different investment manager. The Franklin Templeton Age-Based Portfolios option contains eight portfolios of underlying mutual funds. The MFS Age-Based Portfolios, the BlackRock Age-Based Portfolios, and the iShares Age-Based Portfolios each contain 7 portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the beneficiary's age and desired investment manager, and later reassigned to more conservative portfolios as the beneficiary approaches college age.

Static investment options:

Select among 11 diversified portfolios using BlackRock, iShares, Franklin Templeton and MFS funds; 17 individual-fund portfolios using American Century, BlackRock, iShares, Franklin Templeton, MFS Lord Abbett, MainStay and Neuberger Berman funds; and the Principal Plus Portfolio and NextGen Savings Portfolio.

Underlying investments:

American Century, BlackRock, Franklin Templeton, Lord Abbett, MainStay, MFS or Neuberger Berman mutual funds. The Principal Plus Portfolio consists of one or more GIA issued by one or more insurance companies, deposits in an interest-bearing FDIC-insured bank account at Bank of America, N.A., and to the extent approved by FAME, corporate fixed-income investments and/or similar instruments. The NextGen Savings Portfolio is comprised of an interest-bearing bank deposit account with Bank of America, N.A.

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, but contributions may be subject to a sales charge depending on share class.

Account maintenance fee:

None

Program management fees:

For the Principal Plus Portfolio:
0.44%, includes 0.09% fee to the state

None for the NextGen Savings Portfolio.

For iShares Portfolios:
0.50% distribution/servicing fee (Class A), or 1.25% distribution/servicing fee (Class C) with additional 0.09% fee to the state.

For all other portfolios:
None (Class A), or 0.75% distribution/servicing fee (Class C) with additional 0.09% fee to the state

Expenses of the underlying investments:

Ranges from 0.06% to 1.22% (portfolio weighted average) in the age-based and static multi-fund portfolios and from 0.25% to 1.14% in the individual-fund portfolios. None for the Principal Plus Portfolio and NextGen Savings Portfolio.

Total asset-based expense ratio:

Class A: 0.00% - 1.31%
Class C: 0.00% - 2.06%

Broker loads and commissions:

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Breakpoint pricing:

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Taxes and other Benefits

Program match on contributions:

New Maine accounts may be eligible to receive a $200 Initial Matching Grant when the account is opened with at least $25 (one grant per eligible beneficiary, no income limitations). The NextStep Matching Grant provides a 50% match on contributions up to a $300 grant per year (one grant per eligible beneficiary, no income limitations). A $100 Automated Funding Grant is available for accounts that make six consecutive contributions, no less frequently than quarterly, through an automated funding option (one grant per account, no income limitations). Separately, if a beneficiary is eligible for the $500 Harold Alfond College Challenge Grant, the initial contribution is waived when a NextGen account is opened. Grants for Maine residents may be used on behalf of the beneficiary at an eligible institution of higher education only.

State tax deduction or credit for contributions:

A deduction is not available for contributions made in tax years beginning after December 31, 2015. Contributions to Maine AND non-Maine 529 plans through the end of 2015 of up to $250 per beneficiary per year are deductible in computing Maine taxable income for taxpayers with federal adjusted gross income of $100,000 or less (single or married filing separate) or $200,000 or less (joint or head of household).

State tax recapture provisions:

None.

State tax treatment of qualified distributions:

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

State tax treatment of rollovers:

Maine 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?

No

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:

http://www.nextgenforme.com/

Telephone:

1-877-463-9843

Telephone for broker use:

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