Maryland 529 Save4College Contribution Program
Posted May 14, 2019
HAGERSTOWN, MD (May 14, 2019) – Families and college-bound students may be eligible to receive up to $500 from the State of Maryland and Maryland 529 through the Save4College State Contribution Program. For participation, an account must be opened in the Maryland Senator Edward J. Kasemeyer College Investment Plan (also known as the Maryland College Investment Plan or MCIP) and an online application completed. The following are requirements for eligibility:
- The beneficiary must be a Maryland resident.
- The account holder’s Maryland taxable income cannot exceed $112,500 as an individual or $175,000 as a married couple, filing jointly based on the previous taxable year.
- The MCIP account must be opened or an existing account must have been opened after December 31, 2016, a minimum contribution must be made to the account and the application for the Save4College State Contribution Program must be submitted by 11:59 p.m. on May 31, 2019.
- A minimum contribution must be made no later than November 1.
The online application is available at https://maryland529.com/Save4College. MCIP is managed by T. Rowe Price.
State contributions are not guaranteed. The State funding for contributions is limited to $3,000,000 in fiscal year 2019 and each fiscal year thereafter. As with the entire State budget, the Maryland General Assembly has final approval. If resources are insufficient to fully fund all eligible accounts, Maryland 529 shall provide contributions in the order in which applications are received in good order and give priority to applications of account holders who did not receive a State contribution in any prior year. If you receive a State contribution for any account in a given year, you are not eligible in that year for the income deduction on your State taxes for contributions that you made to that or any other MCIP account. You should check with your tax advisor regarding your specific situation.
Prospective enrollees are encouraged to read the entire Enrollment Kit carefully before deciding to enroll. The Maryland Senator Edward J. Kasemeyer College Investment Plan’s Disclosure Statement provides investment objectives, risks, expenses and costs, fees and other information families should consider carefully before investing. If a parent or potential beneficiary lives outside of Maryland, the Maryland 529 should be compared to any college savings program offered by another home state, which may offer state tax or other state benefits such as financial aid, scholarship funds and protection from creditors that are only available for investments in such state’s 529 plan.