Changes to NC’s 529 College Savings Plan

Here are some recent favorable changes to North Carolina’s National Collge Savings Program (529 Plan):

For 2009, a participant may reallocate the account assets twice during the year, rather than just once.

Included as Qualified High Education Expenses for 2009 and 2010 are expenditures for computer technology, computer equipment and Internet access for the beneficiary or his or her family (provided the beneficiary is enrolled at an Eligible Institution).

The contribution limit is now $382,032 per beneficiary.

From March 1, 2009 to October 31, 2010, the Foundation Administrative Fee on assets in the CollegeHorizonFunds, will be paid by RiverSource Investments, LLC (up to 0.25%).

Changes to the Aggressive Stock Fund Investment and CollegeHorizonFunds options.

For more information, visit the College Foundation of North Carolina’s website, www.CFNC.org.

North Carolina residents also get a tax deduction (up to $2,500, or $5,000 for married filing jointly) for contribution to an NC 529 Plan.  Furthermore, in addition to the income tax free growth (when used for qualified expenses) 529 Plans can also provide gift tax, estate tax and asset protection advantages.

CATEGORIES: 529 College Savings Plans