The savings options, managed by separate investment managers, are:
- the Aggressive Stock Fund, managed by NCM Capital Management Group Inc., offering the combined return of the NCM Capital Focused Equity and Legg Mason Value Trust portfolios
- the Balanced Fund, managed by Evergreen Investment Management Company
- the Dependable Income Fund, managed by the State Treasurer
- the CollegeHorizonFunds, a lifecycle fund managed by J & W Seligman & Company.
The plan is administered by the College Foundation, Inc., acting as agent of the North Carolina State Education Assistance Authority.
Investments in 529 plans grow tax-deferred until withdrawn, and from 2002, when assets are withdrawn for qualified higher education expenses such as tuition, room and board or books, the earnings will be federal income tax free.
Further, unlike Uniform Transfer to Minor accounts, the account owner retains control after the beneficiary reaches legal age, ensuring that the money saved is used for education expenses