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March 15, 2005
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Saving for College Book Updated; 529 Authority Joe Hurley Provides Summary of WV, Surrounding State College Savings Plans
by David M. Kinchen
Editor, Huntington News Network
Hinton (HNN) — It won't be long before paying for your children's education will be the biggest single expense of your life. This may even be true already - if your home mortgage is paid off or if you live where housing prices haven't gone through the roof.
Fortunately, our amazingly complex Internal Revenue Code offers a section, 529, that enables families to save for college without paying taxes on the gains or on the withdrawals if they're used for college expenses. About seven years ago, as the book critic of the (Beckley) Register-Herald, I reviewed Joseph F. Hurley's pioneering book on 529 and other college savings plans, "The Best Way to Save for College: A Complete Guide to 529 Plans." Since legislators are constantly tinkering with the plans offered by all the states and the District of Columbia, Hurley has revised the book for 2005.
According to Pittsford, N.Y.-based Hurley, a CPA, "With over 85,000 copies sold, The Best Way to Save for College has become the one book college-bound families and professional planners must have."
I can't argue with that assessment. Hurley has been involved with college savings plans longer than just about anyone I've come in contact with. His book will make a complex subject easier to understand, especially if you're as financially challenged as I am!
Families interested in 529 and other college savings plans can order the book from Hurley's web site: www.savingforcollege.com. The site also contains useful information about college savings plans and links to other financial web sites.
I asked Hurley to compile a summary of college savings plans available in West Virginia and in the surrounding states of Kentucky, Ohio, Pennsylvania, Maryland and Virginia (we're probably surrounded by more states than any other state in the union). Bear in mind that this summary is no substitute for the book: I'm running it as a public service, something we at Huntington News Network take very seriously. Here's the summary, with the states listed in alphabetical order:
| Quick Links for States | |||||
| Kentucky | Maryland | Pennsylvania | Ohio | Virginia | West Virginia |
STATE: KENTUCKY
PROGRAM NAME: Kentucky Education Savings Plan Trust
529 TYPE: Savings
STATE AGENCY: Kentucky Higher Education Assistance Authority
PROGRAM MANAGER: TIAA-CREF Tuition Financing, Inc.
INITIAL YEAR OF OPERATION: 1990
TELEPHONE: 1-877-598-7878
INTERNET: www.kysaves.com
Who can open an account? Individuals living in the U.S. who have reached the age of majority, emancipated minors, UTMA/UGMA custodians, and legal entities. Not available through brokers.
Time or age limitations on beneficiary or on use of account assets: None
Age-based investment option: The Managed Allocation Option contains 11 portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the age of the beneficiary. The portfolios shift to a more conservative investment allocation over time.
Static investment options: Select between two portfolios: the 100% Equity Option and the Guaranteed Option. The 100% Equity Option invests approximately 80% in the TIAA-CREF Institutional Growth and Income Fund and 20% in the TIAA-CREF Institutional International Equity Fund. The Guaranteed Option is invested in an instrument that guarantees principal and a minimum 3% annual rate of interest (actual rate is declared quarterly).
Underlying investments: TIAA-CREF institutional mutual funds; the Guaranteed Option consists of a funding agreement issued by TIAA-CREF Life Insurance Company.
Fees and expenses: 80% annualized program management fee charged against the value of the account (none for the Guaranteed Option), which includes the expenses of the underlying mutual funds. There are no enrollment or account maintenance fees.
Maximum contributions: Accepts contributions until all Kentucky account balances for the same beneficiary reach $235,000.
Minimum initial contribution: $25, or $15 per month with payroll deduction
Account changes: The program accepts requests to change beneficiary, transfer account ownership, name a successor owner, and transact rollovers and investment changes that meet the requirements of federal tax law and IRS regulations.
Special considerations:
- Under state law, qualified distributions from this program are exempt from Kentucky income tax. Because Kentucky tax law generally conforms to federal tax law, any qualified distributions from other 529 plans that are exempt from federal income tax are also exempt from Kentucky income tax.
- Beneficiaries with at least eight years of participation as a Kentucky resident, and $2,400 in contributions, can lock in their eligibility for in-state tuition rates at Kentucky public institutions, even if they later move out of the state.
- The value of the account will not be counted in determining eligibility and need for student financial aid programs provided by the Commonwealth of Kentucky.
- The program guarantees a 4% minimum return on contributions received before October 1, 1999 (this benefit is targeted to participants who saw their accounts converted when TIAA-CREF was hired as program manager).
- Under Kentucky law, contributions and earnings are exempt from levy of execution, garnishment, distress for rent, or fee bill by a creditor of the account owner or beneficiary.
STATE: KENTUCKY
PROGRAM NAME: Kentucky's Affordable Prepaid Tuition (KAPT)
529 TYPE: Prepaid contract
STATE AGENCY: Kentucky Higher Education Assistance Authority
INITIAL YEAR OF OPERATION: 2001
TELEPHONE: 1-888-919-KAPT (1-888-919-5278)
INTERNET: www.getKAPT.com
Who can purchase a contract? Individuals of legal age, UTMA/UGMA custodians, and legal entities. The beneficiary must be a Kentucky resident at the time of program enrollment or intend to attend a participating institution in Kentucky.
Enrollment period: Begins August 23, 2004 and ends December 13, 2004
Time or age limitations on beneficiary or on use of benefits: Contract must be purchased at least two years prior to the beneficiary's proposed college enrollment date.
Contract benefits: The Value Plan will pay tuition and fees at any school in the Kentucky Community and Technical College System. The Standard Plan will pay tuition and fees equal to the most expensive Kentucky public university in the year of attendance. The Premium Plan represents the average cost of Kentucky's private institutions and grows in value at the same rate as tuition increases at the University of Kentucky. The value of these contracts can be used at any eligible institution in the country. The value of a contract in excess of actual tuition and fees can be used to pay for other expenses such as books, equipment and room and board.
Contract options: There are three tuition plans: Value (one or two years), Standard (one to five years), and Premium (one to five years).
Costs: There is a $50 program enrollment fee for the first contract ($25 for subsequent contracts). For the enrollment period ending December 13, 2004, lump-sum contract prices range from $3,175 for one year to $6,340 for two years in the Value Plan, from $5,724 for one year to $28,578 for five years in the Standard Plan, and from $16,720 for one year to $83,559 for five years in the Premium Plan. Contract payments may be made in a lump sum or in monthly installments (with or without a down payment) over a variety of terms. Monthly installment payments are computed to include an additional cost for making payments over time along with a $1 per month account maintenance fee.
Cancellation provisions: The contract may be canceled at any time. If the contract is canceled before July 1 of the college enrollment year, the refund will consist of the payments made into the program less administration and cancellation fees. If the contract is canceled after July 1 of the college enrollment year, the refund will consist of the payout value less administration and cancellation fees. The refund may be paid in installments. In the event of the beneficiary's death, disability, or receipt of a scholarship, the refund will consist of the payout value and the cancellation fee will be waived.
Contract changes: The program accepts requests to change beneficiary and name a successor owner. Contract ownership is not transferable except in limited circumstances. There are no special provisions concerning rollovers to another 529 plan (cancellation provisions would apply).
State backing: Contracts are not backed by the full faith and credit of the state of Kentucky, but 75 percent of the abandoned property fund administered by the State Treasurer would be available to meet any unfunded liability of the program trust.
Special considerations:
- Under state law, qualified distributions from this program are exempt from Kentucky income tax. Because Kentucky tax law generally conforms to federal tax law, any qualified distributions from other 529 plans that are exempt from federal income tax are also exempt from Kentucky income tax.
- The value of the contract will not be counted in determining eligibility and need for student financial aid programs provided by the Commonwealth of Kentucky.
- Under Kentucky law, the right to benefits is not subject to attachment, garnishment, or seizure by creditors of the purchaser or beneficiary.
STATE: MARYLAND
PROGRAM NAME: College Savings Plans of Maryland-College Investment Plan
529 TYPE: Savings
STATE AGENCY: College Savings Plans of Maryland Board
PROGRAM MANAGER: T. Rowe Price Associates, Inc.
INITIAL YEAR OF OPERATION: 2001
TELEPHONE: 1-888-4MD-GRAD (1-888-463-4723)
INTERNET: www.collegesavingsmd.org
Who can open an account? U.S. citizens and resident aliens, UTMA/UGMA custodians, and legal entities. Not available through brokers.
Time or age limitations on beneficiary or on use of account assets: None
Age-based investment options: The Enrollment-Based Portfolios contain eight portfolios of underlying funds, ranging from 100% equity to 20% equity. Contributions are placed into the portfolio corresponding to the beneficiary's expected year of college enrollment or as selected by the account owner. Seven portfolios shift to a more conservative investment allocation over time, eventually transferring to the Portfolio for College.
Static investment options: Select among four portfolios: the Equity Portfolio, the Bond and Income Portfolio, the Balanced Portfolio (60% equity and 40% fixed income), and the Short-term Bond Portfolio.
Underlying investments: T. Rowe Price mutual funds
Fees and expenses: $90 enrollment fee that covers all accounts opened by the same person for the same beneficiary (reduced to $20 in certain circumstances involving rollovers from the Maryland Prepaid College Trust or for current Maryland Prepaid College Trust account owners), $30 annual account maintenance fee on accounts less than $25,000 (waived for accounts enrolled in an automatic investment or payroll deduction plan), 0.38% annualized program management fee charged against the value of the account, and underlying fund expenses recently ranging from approximately 0.35% to 1.25% (however, the expense ratio cap for the plan as a whole is 1.05%).
Maximum contributions: Accepts contributions until all Maryland account balances for the same beneficiary reach $250,000.
Minimum initial contribution: $250, or $25 per month
Account changes: The program accepts requests to change beneficiary, transfer account ownership, name a successor owner, and transact rollovers and investment changes that meet the requirements of federal tax law and IRS regulations.
Special considerations:
- Up to $2,500 in contributions per beneficiary may be deducted each year from Maryland state taxable income. Excess contributions may be carried forward and deducted for up to ten additional years. Deductions may be subject to recapture if non-qualified withdrawals are made in a subsequent year.
- Under state law, qualified distributions from this program are exempt from Maryland income tax. Because Maryland tax law generally conforms to federal tax law, any qualified distributions from other 529 plans that are exempt from federal income tax are also exempt from Maryland income tax.
STATE: MARYLAND
PROGRAM NAME: College Savings Plans of Maryland-Prepaid College Trust
529 TYPE: Prepaid contract
STATE AGENCY: College Savings Plans of Maryland Board
INITIAL YEAR OF OPERATION: 1998
TELEPHONE: 1-888-4MD-GRAD (1-888-463-4723)
INTERNET: www.collegesavingsmd.org
Who can purchase a contract? U.S. citizens and resident aliens, UTMA/UGMA custodians, and legal entities. The purchaser or beneficiary must be a resident of Maryland or the District of Columbia at the time of program enrollment.
Enrollment period: Most recent enrollment ended March 19, 2004.
Time or age limitations on beneficiary or on use of benefits: The beneficiary must be in the ninth grade or below at the time of program enrollment. After high school graduation, the beneficiary has the number of years purchased in the contract plus ten years and time spent in active military service to use all benefits.
Contract benefits: The contract pays in-state undergraduate tuition and mandatory fees at Maryland public institutions according to the plan and number of years selected. The value derived from the contract will depend in part on the selection of institution, because public institutions in Maryland have different tuition and fee levels. If the beneficiary decides to attend a private or out-of-state school, the contract will pay the weighted average tuition and mandatory fees of the Maryland public colleges in the tuition plan purchased or the actual tuition and mandatory fees, whichever is less. If the beneficiary receives a scholarship or grant, any unused benefits can be used for other qualified expenses including tuition charges in excess of weighted average tuition, graduate school tuition, room and board, and books.
Contract options: One to five years at a Maryland public four-year university, two years at a Maryland community college, or a community/university combination (two years of each).
Costs: There is a one-time $75 enrollment fee. The fee is reduced to $20 in certain circumstances involving purchase of additional years, rollovers, or participation in the Maryland College Investment Plan. In the enrollment period ended March 19, 2004, lump-sum contract prices for a child in the ninth grade ranged from $7,132 for the two-year community college plan to $40,608 for the five-year university plan. Prices are discounted for younger beneficiaries. Payment options also include annual payments, 60 monthly payments or extended monthly payments, which continue until the beneficiary reaches college age. All installment payments are computed to include an effective annual 7.5% cost of making payments over time.
Cancellation provisions: A contract can be canceled at any time to provide a refund of contract payments less a $75 fee, plus or minus 90% (50% if canceled within three years) of the Trust earnings/losses for the period of program participation.
Contract changes: The program accepts requests to change beneficiary, transfer contract ownership, and name a successor owner. The contract value can be transferred to the Maryland College Investment Plan at an amount equal to contract payments less a $20 fee, plus or minus 100% of the Trust earnings/losses for the period of program participation For rollovers to another state's 529 plan, the fee is $75 and rollover value is equal to payments plus 100% of Trust earnings/losses (75% if the contract is under three years old).
State backing: The program has a legislative guarantee. If it is unable to pay benefits in any given year, the Governor must include in the annual budget the amount needed to pay full benefits. However, the Maryland General Assembly has final approval of all state appropriations. Any appropriation would need to be repaid by the Trust, without interest, over the following two years.
Special considerations:
- Tuition benefits will be adjusted to ensure that the minimum benefit is equal to contract payments plus a reasonable rate of return pegged to the one-year Treasury bill (less 1.2%). That amount less actual tuition and fees can be used to pay for other qualified higher education expenses.
- Maryland taxpayers may deduct up to $2,500 of their payments, per contract, each year from Maryland taxable income, with carryforward of excess payments until all payments have been deducted. Deductions may be subject to recapture if non-qualified withdrawals are made in a subsequent year.
- Under state law, qualified distributions from this program are exempt from Maryland income tax. Because Maryland tax law generally conforms to federal tax law, any qualified distributions from other 529 plans that are exempt from federal income tax are also exempt from Maryland income tax.
- If favorable investment performance causes projected program assets to exceed projected liabilities by at least 30%, the Board has the option to rebate the excess surplus to program participants.
- Under Maryland law, the right to benefits is not subject to attachment, garnishment, or seizure by creditors of the contract owner or the beneficiary.
STATE: OHIO
PROGRAM NAME: Ohio CollegeAdvantage Savings Plan
529 TYPE: Savings
STATE AGENCY: Ohio Tuition Trust Authority (OTTA)
PROGRAM MANAGERS: OTTA and Putnam Investments
INITIAL YEAR OF OPERATION: 2000
TELEPHONE: 1-800-AFFORD-IT (1-800-233-6734)
INTERNET: www.collegeadvantage.com
Who can open an account? U.S. citizens and resident aliens, UTMA/UGMA custodians, trusts, and 501(c)(3) organizations. For the Putnam options only, whether sold direct or through brokers, either the account owner or the beneficiary must meet Ohio's residency requirements at the time the account is opened. Ohio nonresidents may join the broker-sold Putnam CollegeAdvantage Savings Plan described separately below.
Time or age limitations on beneficiary or on use of benefits: None
Age-based investment option: One Putnam and three Vanguard Age-Based investment options are offered. The Putnam Age-Based Portfolio contains eight mutual funds. Contributions are allocated between these funds based on the age of the beneficiary. A reallocation of each account is made as the beneficiary ages. The Vanguard Age-Based Options offer a choice among three different schedules: Aggressive, Moderate, and Conservative. Each schedule contains five portfolios of underlying funds. Contributions are placed into the portfolio corresponding to the age of the beneficiary. The portfolios shift to a more conservative investment allocation over time.
Static investment options: Select among several Putnam and Vanguard investment options. The Putnam investment options offer three blended-fund portfolios (Aggressive Growth, Growth, and Balanced), a stable value portfolio, and 12 individual-fund portfolios. The Vanguard investment options offer four blended-fund portfolios and seven individual-fund portfolios.
Underlying investments: Putnam Investments mutual funds and Vanguard funds
Fees and expenses: Audit and administration expenses of up to 0.04% may be charged against the program fund. A 0.05% OTTA fee is charged for the Putnam investment options and a 0.20% OTTA fee is charged for the Vanguard investment options. The expenses of the underlying funds for the Putnam investment options are 0.94% for the age-based portfolio and a range of approximately 0.52% to 1.35% for the static investment options. The expenses of the underlying funds for the Vanguard investment options range from approximately 0.15% to 0.29% which includes a 0.10% investment fee charged to the program by Vanguard. In addition, accounts opened through a broker are subject to one of three broker expense structures that will determine any initial sales charge, contingent deferred sales charge, and/or additional asset-based fees. There are no enrollment or annual account maintenance fees.
Maximum contributions: Accepts contributions until all Ohio account balances for the same beneficiary reach $256,000.
Minimum initial contribution: $15
Account changes: The program accepts requests to change beneficiary, transfer account ownership, name a successor owner, and transact rollovers and investment changes that meet the requirements of federal tax law and IRS regulations.
Special considerations:
- Up to $2,000 in contributions per beneficiary may be deducted against Ohio taxable income each year, with unlimited carryforward of any excess contributions. Deductions may be subject to recapture if non-qualified withdrawals or rollovers to another state's 529 plan are made in a subsequent year, unless the withdrawal results from the beneficiary's death, disability, or receipt of scholarship.
- Under state law, qualified distributions from this program, and distributions due to the beneficiary's death, disability, or receipt of a scholarship, are exempt from Ohio income tax. Because Ohio tax law generally conforms to federal tax law, any qualified distributions from other state 529 plans that are exempt from federal income tax are also exempt from Ohio income tax.
- Under Ohio law, an account shall not be subject to execution, garnishment, attachment, the operation of bankruptcy or the insolvency laws, or other process of law.
STATE: OHIO
PROGRAM NAME: Putnam CollegeAdvantage Savings Plan
529 TYPE: Savings
STATE AGENCY: Ohio Tuition Trust Authority
PROGRAM MANAGER: Putnam Investments
INITIAL YEAR OF OPERATION: 2000
TELEPHONE: 1-800-225-1581
INTERNET: www.putnaminvestments.com
Who can open an account? U.S. citizens and resident aliens, UTMA/UGMA custodians, trusts, and 501(c)(3) organizations. This program is distributed through brokers.
Time or age limitations on beneficiary or on use of account assets: None
Age-based investment option: The Age-Based Portfolio contains eight mutual funds. Contributions are allocated between these funds based on the age of the beneficiary. A reallocation of each account is made as the beneficiary ages.
Static investment options: Select among sixteen options: three blended-fund portfolios (Aggressive Growth, Growth, and Balanced), a stable value option, and twelve individual-fund options.
Underlying investments: Putnam Investments mutual funds
Fees and expenses: $15 annual account maintenance fee on accounts with less than $25,000 (waived for Ohio residents and for accounts enrolled in an automatic investment plan with contributions of at least $50), 0.20% annualized program management fee charged against the value of the account, and underlying fund expenses recently ranging from approximately 0.52% to 1.40% (portfolio weighted average). In addition, accounts are subject to one of three broker expense structures that will determine any initial sales charge, contingent deferred sales charge, and/or additional asset-based fees. There is no enrollment fee.
Maximum contributions: Accepts contributions until all Ohio account balances for the same beneficiary reach $256,000.
Minimum initial contribution: $25, or $15 per month
Account changes: The program accepts requests to change beneficiary, transfer account ownership, name a successor owner, and transact rollovers and investment changes that meet the requirements of federal tax law and IRS regulations.
Special considerations:
- Ohio residents receive the same state income tax and creditor protection benefits described previously for the Ohio CollegeAdvantage Savings Plan.
STATE: OHIO
PROGRAM NAME: Guaranteed Savings Fund
529 TYPE: Guaranteed savings
STATE AGENCY/PROGRAM MANAGER: Ohio Tuition Trust Authority
INITIAL YEAR OF OPERATION: 1989
TELEPHONE: 1-800-AFFORD-IT (1-800-233-6734)
INTERNET: www.collegeadvantage.com
PLEASE NOTE: The Ohio Tuition Trust Authority has suspended contributions into this fund through December 31, 2005. OTTA will decide in 2005 whether to re-open the fund to contributions in 2006.
Who can open an account? U.S. citizens and resident aliens, UTMA/UGMA custodians, trusts, and 501(c)(3) organizations. Either the account owner or the beneficiary must meet Ohio's residency requirements at the time the account is opened.
Time or age limitations on beneficiary or on use of benefits: Withdrawals may not be taken until account owner certifies that beneficiary has reached age 18 or has graduated from high school. Rollovers are permitted prior to age 18.
Benefits: Each unit in the account is worth 1% of the weighted average tuition of Ohio's 13 four-year public universities if held on account until beneficiary is age 18. As of August 1, 2004, this figure is $74.27 per unit. Tuition units can be redeemed to pay for tuition, fees, room and board, books, and other qualified college expenses at any accredited college or university in the country.
Costs: Pricing of tuition units will be determined prior to the fund accepting new contributions. There are no other annual fees or expenses.
Account changes: The program accepts requests to change beneficiary, transfer account ownership, name a successor owner, and transact rollovers that meet the requirements of federal tax law and IRS regulations. Rollover withdrawals from an account for a beneficiary under age 18 utilize an actuarial formula to determine the account value.
Special considerations:
- Ohio residents receive the same state income tax and creditor protection benefits described previously for the Ohio CollegeAdvantage Savings Plan.
- The Guaranteed Savings Fund is backed by the full faith and credit of the state of Ohio. The state would appropriate funds if the fund had insufficient assets to meet obligations.
STATE: PENNSYLVANIA
PROGRAM NAME: TAP 529 Guaranteed Savings Plan
529 TYPE: Guaranteed savings
STATE AGENCY: Pennsylvania State Treasury
PROGRAM MANAGER: Delaware Investments
INITIAL YEAR OF OPERATION: 1993
TELEPHONE: 1-800-440-4000
INTERNET: www.TAP529.com
Who can open an account? A person who has reached the age of majority in their state of residence, UTMA/UGMA custodians, and legal entities. The purchaser or beneficiary must be a Pennsylvania resident at the time of enrollment.
Enrollment period: Open year-round
Time or age limitations on beneficiary or on use of benefits: There is an approximate one-year wait after a contribution is made before it can be withdrawn for college.
Guaranteed Savings: Each contribution to an account is pegged to one of five average tuition levels, or specific tuition levels for 34 publicly-funded schools. Accounts can be used at any eligible educational institution and for all qualified higher education expenses as defined by Section 529. The five average tuition levels correspond to the approximate average tuition charges for that year at 1) Pennsylvania community colleges, 2) the Pennsylvania State System of Higher Education Universities, 3) state-related universities (Penn State, Pitt, Temple, and Lincoln), 4) Ivy League schools, and 5) private four-year colleges. The tuition level used for this purpose is selected by the participant when enrolling, but can be changed at any time and the change is made retroactively. If the account is used for attendance at one of the Pennsylvania publicly-funded schools, the tuition level will be automatically changed to the tuition level at that specific school, recalculating the account based on that school's specific tuition increases. For attendance at any other school, a change in the tuition level can be made by the participant retroactive to the first contribution made.
Costs: There is a one-time $50 enrollment fee (reduced to $25 if account is opened within three weeks of materials being sent) and a $25 annual account maintenance fee (waived for accounts in an automatic investment plan). Within each tuition level a rate for one TAP Credit is established each academic year and is based on the actual tuition or average actual tuition for the school(s) comprising that level. The TAP Credit rate may also contain a premium amount for the purpose of maintaining the actuarial soundness of the program.
Maximum contributions: Accepts contributions until all Pennsylvania accounts for the same beneficiary reach $300,000.
Minimum initial contribution: $25
Cancellation provisions: Cancellation of the account results in a refund of the lesser of (1) the amount that would be obtained by multiplying the number of TAP Credits applied to such distribution by the actual per-credit tuition or average actual per-credit tuition in effect in the academic year of the distribution at the institution(s) comprising the tuition level designated at the time of such distribution, or (2) the market value of the account as determined daily by the program. Additionally, the refund amount will not be less than the amount contributed into the account (less any cancellation fees). If the tuition level was changed within the last twelve months prior to the cancellation, the tuition level that results in the lower refund amount will be used.
Account changes: The program accepts requests to change beneficiary, transfer account ownership, and name a successor owner, subject to residency requirements. A transfer between the TAP 529 Guaranteed Savings Plan and the TAP 529 Investment Plan may be made once in a calendar year. There are no special provisions concerning rollovers to another 529 plan (Pennsylvania taxpayers may be subject to Pennsylvania income tax on the earnings portion of a distribution rolled over to another 529 plan).
State backing: Accounts are not backed by the full faith and credit of the Commonwealth of Pennsylvania. The trustee invests program assets with the goal of creating a reserve to protect against shortfalls in the program fund.
Special considerations:
- Each year the Guaranteed Savings Program fund will be evaluated to determine if the investment performance of the fund has created an excess surplus (above the amount needed to cover future withdrawals as determined by actuarial calculations). The Treasury Department can decide to allocate a portion of the surplus to accounts in the program.
- Qualified distributions are exempt from Pennsylvania income tax. The earnings portion of distributions from other state 529 plans may subject a Pennsylvania resident to Pennsylvania income tax as Pennsylvania currently does not conform to federal tax treatment of qualified distributions.
- Accounts are not subject to Pennsylvania inheritance tax. Accounts owned by a Pennsylvania resident in another state's 529 plan could be subject to Pennsylvania inheritance tax.
- The value of the account will not be counted in determining eligibility and need for student financial aid programs provided by the Commonwealth of Pennsylvania.
- Under Pennsylvania law, a TAP 529 account or any legal interest therein shall not be subject to attachment, levy, or execution by any creditor of an account owner or beneficiary.
- Savings in TAP 529 are eligible for earning "Tuition Rewards" which are guaranteed tuition discounts at over 160 colleges participating in the privately-run SAGE Scholars program.
- Pennsylvania low-income families (200% of the poverty level) may be eligible to have their contributions matched with government funds by participating in the Family Savings Account Program offered through the Pennsylvania Department of Community and Economic Development.
STATE: PENNSYLVANIA
PROGRAM NAME: TAP 529 Investment Plan
529 TYPE: Savings
STATE AGENCY: Pennsylvania State Treasury
PROGRAM MANAGER: Delaware Investments
INITIAL YEAR OF OPERATION: 2002
TELEPHONE: 1-800-440-4000
INTERNET: www.TAP529.com
Who can open an account? A person who has reached the age of majority in their state of residence, UTMA/UGMA custodians, and legal entities. This program is distributed both direct and through brokers. Anyone who does not meet Pennsylvania's residency requirements must open their account through a broker.
Time or age limitations on beneficiary or on use of account assets: None
Age-based investment options: The Age-Based Portfolios offer a choice between two schedules: Aggressive and Conservative. Each schedule contains seven portfolios of underlying funds. Contributions are placed into the portfolio corresponding to the beneficiary's age, and later reassigned to more conservative portfolios as the beneficiary approaches college.
Static investment options: Select among seven portfolios: Most Aggressive, Aggressive, Balanced, Conservative, Most Conservative, Socially Responsible Equity, and Socially Responsible Bond.
Underlying investments: Mutual funds from Delaware Investments and Calvert Asset Management.
Fees and expenses: $25 annual account maintenance fee on accounts $20,000 or less (waived for accounts in an automatic investment plan), 0.35% annualized program management fee charged against the value of the account, and underlying fund expenses recently ranging from approximately 0.45% to 1.29% (portfolio weighted average). There is no enrollment fee. Accounts opened through a broker are subject to one of three alternative broker expense structures that will determine any initial sales charge, contingent deferred sales charge, and/or additional asset-based fees.
Maximum contributions: Accepts contributions until all Pennsylvania account balances for the same beneficiary reach $300,000.
Minimum initial contribution: $1,000 ($50 with automatic investment)
Account changes: The program accepts requests to change beneficiary, transfer account ownership, name a successor owner, and transact investment changes that meet the requirements of federal tax law and IRS regulations. Transfers between the TAP 529 Investment Plan and the TAP 529 Guaranteed Savings Plan may be made once in a calendar year. There are no special provisions concerning rollovers to another 529 plan (Pennsylvania taxpayers may be subject to Pennsylvania income tax on the earnings portion of a distribution rolled over to another 529 plan).
Special considerations:
- Qualified distributions are exempt from Pennsylvania income tax. The earnings portion of distributions from other state 529 plans may subject a Pennsylvania resident to Pennsylvania income tax as Pennsylvania currently does not conform to federal tax treatment of qualified distributions.
- Accounts are not subject to Pennsylvania inheritance tax. Accounts owned by a Pennsylvania resident in another state's 529 plan could be subject to Pennsylvania inheritance tax.
- The value of the account will not be counted in determining eligibility and need for student financial aid programs provided by the Commonwealth of Pennsylvania.
- Under Pennsylvania law, a TAP 529 account or any legal interest therein shall not be subject to attachment, levy, or execution by any creditor of an account owner or beneficiary.
- Savings in TAP 529 are eligible for earning "Tuition Rewards" which are guaranteed tuition discounts at over 160 colleges participating in the privately-run SAGE Scholars program.
- Pennsylvania low-income families (200% of the poverty level) may be eligible to have their contributions matched with government funds by participating in the Family Savings Account Program offered through the Pennsylvania Department of Community and Economic Development.
STATE: VIRGINIA
PROGRAM NAME: Virginia Prepaid Education Program (VPEP)
529 TYPE: Prepaid contract
STATE AGENCY: Virginia College Savings Plan Board
INITIAL YEAR OF OPERATION: 1996
TELEPHONE: 1-888-567-0540
INTERNET: www.virginia529.com
Who can purchase a contract? U.S. citizens and resident aliens 18 years and older, UTMA/ UGMA custodians, and legal entities. The purchaser, beneficiary, or parent of a non-resident beneficiary must be a Virginia resident.
Enrollment period: Most recent enrollment ended May 1, 2003; next enrollment begins October 1, 2004 and ends January 31, 2005
Time or age limitations on beneficiary or on use of benefits: The beneficiary must be in the ninth grade or below at the time the contract is purchased. Contract benefits must be used within ten years after the projected date of high school graduation; extensions may be requested.
Contract benefits: The contract pays in-state undergraduate tuition and mandatory fees at a Virginia public institution according to the plan and number of years selected. The value derived from the contract will depend in part on the selection of institution, because public institutions in Virginia have different tuition and fee levels. At any time, contracts may be rolled over from VPEP to VEST or CollegeAmerica (Virginia's 529 savings program options) at an amount that includes payments plus a reasonable rate of return (the institutional money-market fund index). If the beneficiary decides to attend an in-state private school, the contract will pay an amount equal to the payments made plus the actual rate of return earned on program fund investments, capped at the highest tuition and mandatory fees at a Virginia public institution. For attendance at an out-of-state school, the contract will pay an amount equal to payments made plus a reasonable rate of interest based on institutional money market rates, capped at the average tuition and mandatory fees at Virginia public institutions.
Contract options: One to five years at a Virginia public four-year university, one to three years at a Virginia community college, or any combination of university and community college (maximum of eight years).
Costs: There is a one-time $85 application fee ($25 for each additional Virginia account opened and owned by the same person). In the enrollment period that ended May 1, 2003, lump-sum contract prices for a child in the ninth grade ranged from $1,731 for the one-year community college plan to $29,400 for the five-year university plan. Prices are discounted for younger beneficiaries. The contract price may also be paid in 60 monthly installments or over an extended period until the beneficiary reaches college age (with or without a down payment). All installment payments are computed to include an effective annual 8% cost of making payments over time.
Cancellation provisions: If the contract is canceled within three years, the program will provide a refund of contract payments less a $25 cancellation fee. If the contract is canceled after three years, the program will provide a refund of contract payments plus a reasonable rate of return (the institutional money-market index) less a $25 cancellation fee. Cancellation fees are waived in the event of the beneficiary's death, disability, or receipt of a scholarship.
Contract changes: The program accepts requests to change beneficiary (an additional payment may be required if the new beneficiary is older than the current beneficiary), transfer contract ownership, and name a successor owner. A $10 fee is charged for certain changes. Contract payments, including reasonable interest, may be rolled over to Virginia's VEST or CollegeAmerica programs at any time. The program also permits rollover of contract payments to another state's 529 plan, except that interest is included only on contracts that are at least three years old, and a $25 fee is charged.
State backing: If the investment return on program funds is not sufficient to cover the plan's contractual obligations, Virginia law requires that the Governor include in the budget an appropriation providing for such contingency.
Special considerations:
- Up to $2,000 of contract payments per account are deductible from Virginia taxable income each year, with unlimited carryforward of excess payments. The $2,000 limit is removed for individuals who are at least 70 years old. Deductions may be subject to recapture if non-qualified distributions or rollovers to another state's 529 plan are made in a subsequent year, unless the distribution results from the beneficiary's death, disability, or receipt of scholarship.
- Under Virginia law, qualified distributions from this program, and distributions due to the death, disability, or receipt of a scholarship, are exempt from Virginia income tax. Because Virginia tax law generally conforms to federal tax law, any qualified distributions from other 529 plans that are exempt from federal income tax are also exempt from Virginia income tax.
- The value of the contract will not be counted in determining eligibility and need for student financial aid programs provided by the Commonwealth of Virginia.
- Under Virginia law, contracts are protected from the claims of creditors of the purchaser or the beneficiary.
STATE: VIRGINIA
PROGRAM NAME: Virginia Education Savings Trust (VEST)
529 TYPE: Savings
STATE AGENCY/PROGRAM MANAGER: Virginia College Savings Plan Board and its Executive Director
INITIAL YEAR OF OPERATION: 1999
TELEPHONE: 1-888-567-0540
INTERNET: www.virginia529.com
Who can open an account? U.S. citizens and resident aliens 18 years and older, UTMA/ UGMA custodians, and legal entities. Not available through brokers.
Time or age limitations on beneficiary or on use of account assets: Accounts must be used within 10 years after the projected date of high school graduation, or within 10 years after the account is opened if the beneficiary has already graduated from high school; extensions may be requested.
Age-based investment option: The Age-Based Portfolios contain seven portfolios of underlying investments. Contributions may be invested in any portfolio. The portfolios automatically shift to a more conservative investment allocation over time.
Static investment options: Select among four portfolios: Aggressive, Moderate, Conservative and Money Market.
Underlying investments: Mutual funds or separate accounts managed by Vanguard, Rothschild Asset Management, Capital Guardian, Franklin Templeton, Western Asset Management, and Invesco
Fees and expenses: $85 enrollment fee ($25 for each additional Virginia account opened by the same account owner), and operating and investment expenses at an annual rate recently ranging from approximately 0.85% to 1.00%. There is no account maintenance fee.
Maximum contributions: Accepts contributions until all Virginia account balances for the same beneficiary reach $250,000.
Minimum initial contribution: $25; $250 minimum in first 12 months
Account changes: The program accepts requests to change beneficiary, transfer account ownership, name a successor owner, and transact rollovers and investment changes that meet the requirements of federal tax law and IRS regulations.
Special considerations:
- Up to $2,000 of contributions per account are deductible from Virginia taxable income each year, with unlimited carryforward of excess contributions. The $2,000 limit is removed for individuals who are at least 70 years old. Deductions may be subject to recapture if non-qualified withdrawals or rollovers to another state's 529 plan are made in a subsequent year, unless the withdrawal results from the beneficiary's death, disability, or receipt of scholarship.
- Under Virginia law, qualified distributions from this program, and distributions due to the death, disability, or receipt of a scholarship, are exempt from Virginia income tax. Because Virginia tax law generally conforms to federal tax law, any qualified distributions from other 529 plans that are exempt from federal income tax are also exempt from Virginia income tax.
- Under Virginia law, accounts are protected from the claims of creditors of the account owner or the beneficiary.
STATE: VIRGINIA
PROGRAM NAME: CollegeAmerica
529 TYPE: Savings
STATE AGENCY/PROGRAM MANAGER: Virginia College Savings Plan Board and its Executive Director
INVESTMENT MANAGER: American Funds
INITIAL YEAR OF OPERATION: 2002
TELEPHONE: 1-800-421-4120
INTERNET: www.americanfunds.com
Who can open an account? U.S. citizens and resident aliens, UTMA/UGMA custodians, and legal entities. This program is distributed through brokers.
Time or age limitations on beneficiary or on use of account assets: Must use the assets in the account or designate a new beneficiary within 30 years after the beneficiary graduates from high school or within 30 years after opening the account, whichever comes later.
Age-based investment options: None
Static investment options: Select among 21 individual American Funds. Contributions may be directed to one fund or allocated among them.
Underlying investments: American Funds.
Fees and expenses: $10 enrollment fee, $10 annual account maintenance fee, and underlying fund expenses that vary by fund. In addition, accounts are subject to one of three alternative broker expense structures that will determine any initial sales charge, contingent deferred sales charge, and/or additional asset-based fees.
Maximum contributions: Accepts contributions until all Virginia account balances for the same beneficiary reach $250,000.
Minimum initial contribution: $250 per fund ($1,000 for the Cash Management Trust of America)
Account changes: The program accepts requests to change beneficiary, transfer account ownership, name a successor owner, and transact rollovers and investment changes that meet the requirements of federal tax law and IRS regulations.
Special considerations:
- Up to $2,000 of contributions per account are deductible from Virginia taxable income each year, with unlimited carryforward of excess contributions. The $2,000 limit is removed for individuals who are at least 70 years old. Deductions may be subject to recapture if non-qualified withdrawals or rollovers to another state's 529 plan are made in a subsequent year, unless the withdrawal results from the beneficiary's death, disability, or receipt of scholarship.
- Under Virginia law, qualified distributions from this program, and distributions due to the death, disability, or receipt of a scholarship, are exempt from Virginia income tax. Because Virginia tax law generally conforms to federal tax law, any qualified distributions from other 529 plans that are exempt from federal income tax are also exempt from Virginia income tax.
- Under Virginia law, accounts are protected from the claims of creditors of the account owner or the beneficiary.
STATE: WEST VIRGINIA
PROGRAM NAME: SMART529 Prepaid Tuition Plan
529 TYPE: Prepaid contract
STATE AGENCY: West Virginia College Prepaid Tuition and Savings Program Board of Trustees
PROGRAM MANAGER: Hartford Life Insurance Company
INITIAL YEAR OF OPERATION: 1998
TELEPHONE: 1-866-574-3542
INTERNET: www.SMART529.com
Who can purchase a contract? Individuals 18 years and older and approved legal entities. The purchaser, beneficiary, or parent of a non-resident beneficiary must be a West Virginia resident at the time the contract is purchased.
Enrollment period: Currently closed to new enrollments. The most recent enrollment period ended December 31, 2002.
Time or age limitations on beneficiary or on use of benefits: The beneficiary must be in the ninth grade or below at the time the contract is purchased. Contract benefits must be used within 10 years after the projected college entrance date.
Contract benefits: The contract pays in-state undergraduate tuition and mandatory fees at a West Virginia public institution according to the number of units purchased. If the beneficiary receives a scholarship, any remaining contract value can be refunded or applied to room and board, books, or supplies. The value derived from the contract will depend in part on the selection of institution, because public institutions in West Virginia have different tuition and fee levels. If the beneficiary decides to attend a private college in West Virginia or an out-of-state college, the program will pay the plan benefit value based on the weighted average tuition and mandatory fees at West Virginia public institutions.
Contract options: One to ten semester units (up to five years).
Costs: In the enrollment period that ended December 31, 2002, the lump-sum contract price for a child in the ninth grade was $1,832 per unit. Prices are discounted for younger beneficiaries. Payments may be made in a single lump sum or in monthly installments (with or without a down payment) over a variety of terms. Installment payments are computed to include an effective annual 7.25% to 8.50% cost of making payments over time. There is no enrollment fee.
Cancellation provisions: A contract may be canceled at any time and the cancellation value will be distributed to the contract owner. The cancellation value is the lesser of (1) payments made and accumulated at the actual rate of return, with realized and unrealized gains and losses, less administrative expenses, or (2) payments made and accumulated at a 1.5% annual rate of return, less administrative expenses.
Contract changes: The program accepts requests to change beneficiary (an additional payment may be required if the new beneficiary's projected college enrollment date is different), transfer contract ownership, name a successor owner, and transact rollovers that meet the requirements of federal tax law and IRS regulations.
State backing: Contracts are not backed by the full faith and credit of the state of West Virginia. A prepaid tuition escrow account was created to ensure payment of prepaid tuition contracts. Up to $500,000 annually is placed in the escrow account if an unfunded liability exists in the trust fund.
Special considerations:
- All contract payments are deductible from West Virginia taxable income each year. Deductions may be subject to recapture if non-qualified withdrawals are made in a subsequent year.
- West Virginia does not specifically provide that qualified distributions are exempt from state income tax, but its tax law generally conforms to federal tax law and so any qualified distributions that are exempt from federal income tax are also exempt from West Virginia income tax.
- The value of the account will not be counted in determining eligibility and need for student financial aid programs provided by the state of West Virginia.
- Moneys in the trust fund are exempt from creditor process in West Virginia, and payments made on behalf of a designated beneficiary to the trust fund are exempt from the property of an estate in bankruptcy proceedings in West Virginia.
STATE: WEST VIRGINIA
PROGRAM NAME: SMART529 College Savings Option
529 TYPE: Savings
STATE AGENCY: West Virginia College Prepaid Tuition and Savings Program Board of Trustees
PROGRAM MANAGER: Hartford Life Insurance Company
INITIAL YEAR OF OPERATION: 2002
TELEPHONE: 1-866-574-3542
INTERNET: www.SMART529.com
Who can open an account? U.S. citizens and resident aliens, UTMA/UGMA custodians, and legal entities. This program is distributed both direct and through brokers. Anyone who does not meet West Virginia's residency requirements must open their account through a broker.
Time or age limitations on beneficiary or on use of account assets: None
Age-based investment option: The Age-Based Option contains four portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the beneficiary's age, and later reassigned to more conservative portfolios as the beneficiary approaches college, unless otherwise instructed by the account owner.
Static investment options: In the direct-sold program, select among five blended-fund portfolios (Aggressive Growth, Growth, Balanced, Conservative Balanced, and Conservative Bond), and a stable value fund portfolio. In the broker-sold program, select among three blended-fund portfolios (Aggressive Growth, Growth, and Balanced), a stable value fund, and eight individual-fund portfolios.
Underlying investments: Mutual funds from Hartford Funds and Invesco
Fees and expenses: $25 annual account maintenance fee for accounts less than $25,000 (waived for West Virginia residents and for accounts in an automatic investment plan), and a 1.16% annualized program management fee charged against the value of the account, which includes the expenses of the underlying mutual funds. There is no enrollment fee. Accounts opened through a broker are subject to one of three alternative broker expense structures that will determine any initial sales charge, contingent deferred sales charge, and/or additional asset-based fees.
Maximum contributions: Accepts contributions until all West Virginia account balances for the same beneficiary reach $265,620.
Minimum initial contribution: $100, or $15 per month with automatic investments ($500, or $50 per month with automatic investments, for accounts opened by nonresidents through a broker)
Account changes: The program accepts requests to change beneficiary, transfer account ownership, name a successor owner, and transact rollovers and investment changes that meet the requirements of federal tax law and IRS regulations.
Special considerations:
- All contributions are deductible from West Virginia taxable income each year. Deductions may be subject to recapture if non-qualified withdrawals are made in a subsequent year.
- West Virginia does not specifically provide that qualified distributions are exempt from state income tax, but its tax law generally conforms to federal tax law and so any qualified distributions that are exempt from federal income tax are also exempt from West Virginia income tax.
- The value of the account will not be counted in determining eligibility and need for student financial aid programs provided by the state of West Virginia.
- Moneys in the trust fund are exempt from creditor process in West Virginia, and payments made on behalf of a designated beneficiary to the trust fund are exempt from the property of an estate in bankruptcy proceedings in West Virginia.
STATE: WEST VIRGINIA
PROGRAM NAME: SMART529 Select
529 TYPE: Savings
STATE AGENCY: West Virginia College Prepaid Tuition and Savings Program Board of Trustees
PROGRAM MANAGER: Hartford Life Insurance Company
INITIAL YEAR OF OPERATION: 2004
TELEPHONE: 1-877-767-8529
INTERNET: www.SMART529Select.com
Who can open an account? U.S. citizens and resident aliens, UTMA/UGMA custodians, and legal entities. This program is not available through brokers.
Time or age limitations on beneficiary or on use of account assets: None
Age-based investment option: The Age-Based Option contains seven portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the beneficiary's age, and later reassigned to more conservative portfolios as the beneficiary approaches college, unless otherwise instructed by the account owner.
Static investment options: Select among ten blended-fund portfolios ranging from 100% equity to 100% fixed income.
Underlying investments: Mutual funds from Dimensional Fund Advisors
Fees and expenses: $25 annual account maintenance fee for accounts less than $25,000 (waived for West Virginia residents and for accounts in an automatic investment plan), 0.68% annualized program management fee charged against the value of the account, and underlying fund expenses recently ranging from approximately 0.20% to 0.51%. There is no enrollment fee.
Maximum contributions: Accepts contributions until all West Virginia account balances for the same beneficiary reach $265,620.
Minimum initial contribution: $500, or $50 per month
Account changes: The program accepts requests to change beneficiary, transfer account ownership, name a successor owner, and transact rollovers and investment changes that meet the requirements of federal tax law and IRS regulations.
Special considerations:
- West Virginia residents receive the same state income tax, financial aid, and creditor protection benefits previously described for West Virginia's SMART529 College Savings Option.
STATE: WEST VIRGINIA
PROGRAM NAME: Leaders SMART529
529 TYPE: Savings
STATE AGENCY: West Virginia College Prepaid Tuition and Savings Program Board of Trustees
PROGRAM MANAGER: Hartford Life Insurance Company
INITIAL YEAR OF OPERATION: 2003
TELEPHONE: 1-866-574-3542
INTERNET: www.SMART529.com
Who can open an account? U.S. citizens and resident aliens 18 years and older, UTMA/UGMA custodians, and legal entities. This program is distributed through brokers.
Time or age limitations on beneficiary or on use of account assets: None
Age-based investment option: The Age-Based Portfolios consist of four portfolios of underlying funds, ranging from 100% equity to 20% equity. Contributions are placed into the portfolio corresponding to the beneficiary's age, and later reassigned to more conservative portfolios as the beneficiary approaches college.
Static investment options: Select among four blended-fund portfolios (Aggressive Growth, Growth, Balanced, and Conservative), a stable value fund, and fifteen individual-fund portfolios.
Underlying investments: Mutual funds from AIM, American Funds, Franklin Templeton, MFS, and Invesco
Fees and expenses: $25 annual account maintenance fee for accounts less than $25,000 (waived for West Virginia residents and for accounts in an automatic investment plan), 0.44% annualized program management fee charged against the value of the account, and underlying fund expenses recently ranging from approximately 0.83% to 1.01% for the age-based and blended-fund portfolios, and from approximately 0.70% to 1.38% for the individual-fund portfolios. In addition, accounts are subject to one of three alternative broker expense structures that will determine any initial sales charge, contingent deferred sales charge, and/or additional asset-based fees. There is no enrollment fee.
Maximum contributions: Accepts contributions until all West Virginia account balances for the same beneficiary reach $265,620.
Minimum initial contribution: $500, or $50 per month with automatic investments ($100 or $15 per month with automatic investments for West Virginia residents)
Account changes: The program accepts requests to change beneficiary, transfer account ownership, name a successor owner, and transact rollovers and investment changes that meet the requirements of federal tax law and IRS regulations.
Special considerations:
- West Virginia residents receive the same state income tax, financial aid, and creditor protection benefits previously described for West Virginia's SMART529 College Savings Option.
STATE: WEST VIRGINIA
PROGRAM NAME: Cornerstone SMART529
529 TYPE: Savings
STATE AGENCY: West Virginia College Prepaid Tuition and Savings Program Board of Trustees
PROGRAM MANAGER: Hartford Life Insurance Company
INITIAL YEAR OF OPERATION: 2003
TELEPHONE: 1-866-574-3542
INTERNET: www.SMART529.com
Who can open an account? U.S. citizens and resident aliens 18 years and older, UTMA/UGMA custodians, and legal entities. This program is distributed through Edward Jones financial advisors.
Time or age limitations on beneficiary or on use of account assets: None
Age-based investment option: The Age-Based Portfolios consist of four portfolios of underlying funds, ranging from 100% equity to 20% equity. Contributions are placed into the portfolio corresponding to the beneficiary's age, and later reassigned to more conservative portfolios as the beneficiary approaches college.
Static investment options: Select among four blended-fund portfolios (Aggressive Growth, Growth, Balanced, and Conservative), a stable value fund, and twenty-one individual-fund portfolios.
Underlying investments: Mutual funds from Hartford Funds, Invesco, American Funds, Federated Investors, Goldman Sachs Asset Management, Lord Abbett, Putnam Investments, and Van Kampen Investments
Fees and expenses: $25 annual account maintenance fee for accounts less than $25,000 (waived for West Virginia residents and for accounts in an automatic investment plan), 0.44% annualized program management fee charged against the value of the account, and underlying fund expenses recently ranging from approximately 0.76% to 0.96% for the age-based and blended-fund portfolios, and from approximately 0.72% to 1.31% for the individual-fund portfolios. In addition, accounts are subject to one of three alternative broker expense structures that will determine any initial sales charge, contingent deferred sales charge, and/or additional asset-based fees. There is no enrollment fee.
Maximum contributions: Accepts contributions until all West Virginia account balances for the same beneficiary reach $265,620.
Minimum initial contribution: $500, or $50 per month with automatic investments ($100 or $15 per month with automatic investments for West Virginia residents)
Account changes: The program accepts requests to change beneficiary, transfer account ownership, name a successor owner, and transact rollovers and investment changes that meet the requirements of federal tax law and IRS regulations.
Special considerations:
- West Virginia residents receive the same state income tax, financial aid, and creditor protection benefits previously described for West Virginia's SMART529 College Savings Option.
