DC Launches 529 Plan

With a participating employer payroll deduction, workers can enroll in the program with an initial contribution of $15.  Workers can enroll outside of their employer with:

• $25 initial contribution on an automatic withdraw from a bank account
• $100 minimum contribution if sending a check

District of Columbia residents can receive up to $3,000 per single filing taxpayer – $6,000 for married couples filing jointly – in annual DC tax deductions.   Excess contributions can be carried forward to subsequent years, for a period of up to five years.

Additionally, District of Columbia residents will have no charge to set up the account and only a $15 annual maintenance fee.   Residents of other states pay a $25 enrollment fee and a $30 annual maintenance fee.

Investment management, record keeping and other program related services will be provided by Calvert Asset Management Company, Inc.   The Plan will offer three ways to invest:

• Age based portfolio with five age “bands” that change the portfolio allocations among stock, bonds and money markets at pre-determined ages
• Six single fund options, ranging in risk level from conservative to aggressive
• Stability of principal that guarantees fixed rate of return of at least 3%

More information, such as the plan’s disclosure booklet and an application form can be found at www.dccollegesavings.com .