Products January 11, 2003

DC Launches 529 Plan

November 13, 2002 (PLANSPONSOR.com) - The District of Columbia has launched DC College Savings Plan, the District's 529 College Savings product.
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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.

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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 .

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