BALTIMORE — May 29th is also known as Maryland 529 Day, a reminder to open a college savings account to be eligible for a $500 contribution from the state.
The Save4College Contribution Program was designed to help Maryland families better afford higher education. Applicants can get up to $500 by putting in as little as $25. State funding is limited to $3 million. Even if you received a contribution the year before, you could still get money this year. To be eligible, applicants must:
- Be Maryland residents
- Have a maximum household income of $112,500 as an individual or $175,000 as a married couple
- Open a new Maryland College Investment Plan Account or have opened an account after December 31, 2016
- Make a minimum contribution (based on your income) by November 1
All applications for the 2019 Save4College Contribution Program must be submitted by May 31.
"Saving for college now versus borrowing down the road, you literally can cut your out-of-pocket cost in half simply by saving now, investing that money into a 529 plan,” said Michelle Winner, public relations and marketing program manager for Maryland 529.
You don't need kids to start saving, as long as the beneficiary is a Maryland resident, you can register now and change the name later.
If you receive a contribution, you can expect to see the money in your account by the end of the year.
And there are two types of 529 plans available - Maryland Senator Edward J. Kasemeyer Prepaid College Trust that locks in tomorrow's tuition at today's prices and the Maryland Senator Edward J. Kasemeyer College Investment Plan. Both offer tax advantages.
Click here to learn more about the different programs.
