529 PLANS

Maryland 529 -- College Investment Plan NEW! PDF ReportPRO

Maryland

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.

5-Cap Rating

Resident:
Non-Resident:
?

In Savingforcollege.com's latest quarterly rankings, this plan ranked in the top 10 for 1-year, 3-year, 5-year and/or 10-year performance.

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. (Scale 0 to 5; 5 is highest)

Performance Costs Features Reliability Resident Upgrade
3.49 4.09 3.43 3.90 0.30

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General

Program type:

Savings

How to enroll:

Enroll directly with the program.
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Initial year of operation:

2001

State agency(ies):

Maryland 529

Program manager:

T. Rowe Price Associates, Inc.

Program distributor:

T. Rowe Price Associates, Inc.

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

Significant time or age restrictions imposed by the program:

None

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.

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).

Underlying investments:

T. Rowe Price mutual funds.

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.

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

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?

No

Statutory protection of an account from creditors:

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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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Contact

Website:

visit
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Telephone:

1-888-463-4723

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