BALTIMORE, March 19, 2018 /PRNewswire/ -- Maryland 529, formerly College Savings Plans of Maryland, and the State of Maryland have just made saving for college easier by launching the online application for the Save4College State Contribution Program. From now till June 1, 2018 apply for the Save4College State Contribution Program and you could be eligible for a $250 contribution from the State to help your child achieve their dream of attending college.
Maryland 529 is an independent, non-profit state agency that provides two flexible and affordable 529 plans: the Maryland Prepaid College Trust (MPCT) and the Maryland College Investment Plan (MCIP), which is managed and distributed by T. Rowe Price. In 2017, Morningstar Inc., awarded the MCIP a "Silver" Analyst Rating, placing the plan among the top best-in-class plans.*
According to Prosperity Now (formerly the Corporation for Enterprise Development), families that save any amount for college – even less than $500 – are three times more likely to enroll a child in college and four times more likely to see that child graduate than families that haven't saved anything.** The Save4College State Contribution Program was designed with this in mind – with the goal being to help lower to middle-income families in Maryland save money for their child's college education.
Individuals who open a new MCIP account, or opened a new MCIP Account after December 31, 2016, file an application prior to June 1, 2018, and make at least the minimum contribution may be eligible to receive a $250 state contribution to their account.*** Applicants must meet several requirements to qualify for the program. The beneficiary must be a Maryland resident and the Account Holder's Maryland taxable income must not exceed the maximum household income range of $112,500 as an individual and $175,000 as a couple based on the previous taxable year.
Maryland 529 will waive the initial contribution for applicants who open an MCIP Account and apply for the Save4College State Contribution Program. If an applicant receives a notification that they are eligible for the program, they must make a minimum contribution between July 1 and November 1, 2018. Applicants who successfully meet all of the eligibility requirements will then receive a $250 contribution from the State that will be deposited directly into their MCIP Account by December 31, 2018.
The dream of a college education can come true for every child, and it starts by opening a Maryland 529 plan. For more information about the Save4College State Contribution Program, visit https://Maryland529.com/MDMatch250.
Please read the entire Enrollment Kit carefully before deciding to enroll. The Maryland College Investment Plan Disclosure Statement provides investment objectives, risks, expenses and costs, Fees, and other information you should consider carefully before investing. If you or your beneficiary live outside of Maryland, you should compare Maryland 529 to any college savings program offered by your home state or your beneficiary's home state, which may offer state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state's 529 plan
*Morningstar analysts reviewed 62 plans for its 2017 ratings (10/24/17), of which 10 plans received a "Silver" rating. To determine a plan's rating, Morningstar's analysts considered 5 factors: the plan's strategy and investment process; the plan's risk-adjusted performance; an assessment of the individuals managing the plan's investment options; the stewardship practices of the plan's administration and parent firm; and whether the plan's investment options are a good value proposition compared with its peers. Plans were then assigned forward-looking ratings of "Gold," "Silver," "Bronze," "Neutral," and "Negative." Each year, certain of the industry's smallest plans are not rated.
Analyst Ratings are subjective in nature and should not be used as the sole basis for investment decisions. Analyst Ratings are based on Morningstar analysts' current expectations about future events and, therefore, involve unknown risks and uncertainties that may cause Morningstar's expectations not to occur or to differ significantly from what was expected. Morningstar does not represent its Analyst Ratings to be guarantees.
**CFED Fact File 2014, "Scholarly Research on Children's Savings Accounts," Prosperity Now formerly the Corporation for Enterprise Development (July 21, 2014).
***State Contributions are not guaranteed. The State funding for contributions is limited to (i) $5,000,000 in fiscal year 2018, (ii) $7,000,000 in fiscal year 2019, and (iii) $10,000,000 in fiscal year 2020 and each fiscal year thereafter. As with the entire State budget, the Maryland General Assembly has final approval. If resources are insufficient to fully fund all eligible accounts, Maryland 529 shall provide contributions in the order in which applications are received and give priority to applications of Account Holders who did not receive a State Contribution in any prior year. 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. You should check with your tax advisor regarding your specific situation.
SOURCE Maryland 529