More North Carolinians are Saving for College

- Number of accounts in NC 529 Plan hits 100,000 -

RALEIGH, N.C., Feb. 6, 2012 /PRNewswire-USNewswire/ -- At the end of January, 2012 the number of active accounts in the North Carolina 529 Plan reached a new high of 100,000.  By February 1, the number of accounts had already increased to 100,085, a 15.1% growth over the number on that same day the previous year.

Of the college savings accountholders in the NC 529 Plan, 94% are residents of North Carolina.

To celebrate hitting the milestone number of 100,000 accounts, College Foundation, Inc., administrator of the NC 529 Plan, held a random drawing to award an accountholder $529 to add to his or her college savings.  Elliott Martimbeau of Charlotte, who has NC 529 accounts for his two young children, was the winner and decided to split the contribution equally between his accounts. 

When Dee Burke, savings program manager, contacted Martimbeau with the news, she asked how he became interested in the program.  "I was referred to the NC 529 Plan by my financial advisor because of the state tax deduction and the flexibility North Carolina's 529 offers," said Martimbeau.  He also commented that he regularly monitors his accounts online at CFNC.org/NC529 because he finds "the online portal excellent. "

The NC 529 Plan offers both federal and state tax advantages.  North Carolinians at all income levels who contribute to an account in the NC 529 Plan are eligible for a tax deduction for contributions of up to $2,500 (individual) or $5,000 (married, filing jointly).   NC 529 contributions are the only 529 contributions deductible when determining North Carolina taxable income.

On Feb. 1, 2012, the NC 529 Plan had $895,975,580 in total assets, a 21.1% increase since that time the previous year. 

If you have any questions about the NC 529 Plan, call toll-free 1-800-600-3453.  To open an account, go to CFNC.org/NC529.

For more information about North Carolina's National College Savings Program, please review the complete Program Description and Enrollment Agreement available at CFNC.org/NC529 or contact 800-600-3453 to request an enrollment kit that includes both. Before opening an Account, or contributing funds to an existing Account, you should carefully read and consider the Program Description, which includes information on investment objectives, risks, charges, expenses, and other important information.

North Carolina's National College Savings Program is a program of the State of North Carolina, established and maintained by the State Education Assistance Authority (Authority) as a qualified tuition program under federal tax law, and administered by College Foundation, Inc. (CFI).  Check with your home state about tax or other benefits associated with investing in its own qualified tuition plan. 

The features of a qualified tuition program are complex and involve significant tax issues. The earnings portion of withdrawals not used for qualified higher education expenses are subject to federal income tax and a 10% federal penalty tax, as well as state and local income taxes. The availability of tax benefits may be contingent on meeting other requirements.

Accounts themselves are not bank or credit union deposits and are not insured by the FDIC or NCUA.  Neither the Contributions nor the earnings thereon invested in or allocated to Program Accounts are backed by the full faith and credit of the State of North Carolina or guaranteed by the Authority, CFI, SECU or Vanguard.  Notwithstanding the foregoing, Contributions and interest earned thereon allocated to the Federally-Insured Deposit Account Investment Option are guaranteed by SECU and insured by NCUA, which is backed by the full faith and credit of the United States Government.  The value of a Participant's Account will fluctuate depending on market conditions and the performance of the Investment Options selected. You could lose money by investing in the Program.  Participants assume all responsibility for federal and state tax consequences.

SOURCE College Foundation, Inc.