Saving for College the Smart way - 529 Plans          

 

Maine 529 Plans

Maine offers two very similar 529 college savings plans. The direct-sold plan is called NextGen College Investing Plan - Direct Series, and the advisor-sold plan is called NextGen College Investing Plan - Select Series.

NextGen College Investing Plan - Direct Series

NextGen College Investing Plan - Direct Series is a traditional 529 plan that allows you to invest money today and reap tax benefits when you withdraw it to pay for qualified education expenses.

Type:  Direct - this Maine 529 plan can be purchased directly from the state.

Fund Family:  Various

Minimums:  To get started you can deposit $250 (or if you choose to use the automatic monthly plan or the payroll deduction method, no deposit is necessary.  The minimum subsequent contribution is $50 (or $25 per beneficiary).

Maximum Contributions:  Currently, you can contribute to your Maine 529 plan until the aggregate balance per beneficiary reaches $380,000.  Of course, your total amount in the plan can be higher as your investments group.  529 plans typically increase the contribution limit over time, so you may be able to contribute more.

Tax Benefits: Good news for Maine residents -- by investing in your state's 529 plan, you can deduct up to $250 on your adjusted gross income.  You also get federal income tax benefits as you do not pay income tax on your earnings.  Out-of-state participants still get the federal tax benefits.

Other Benefits: Maine residents can receive matching grants.  Details of these grants change from time to time.

Residency: NextGen College Investing Plan - Direct Series is open to all United States residents, not just those in Maine.

You can learn more about this Maine 529 plan at the official website http://www.nextgenplan.com/.

 

NextGen College Investing Plan - Select Series

NextGen College Investing Plan - Select Series is a traditional 529 plan that allows you to invest money today and reap tax benefits when you withdraw it to pay for qualified education expenses.

Type:  Advisor.  Please contact a financial advisor in your state for assistance.

Fund Family:  Various

Minimums:  To get started you can deposit $250, or if you choose to use the automatic monthly plan or the payroll deduction method, no deposit is necessary.  The minimum subsequent contribution is $50.

Maximum Contributions:  Currently, you can contribute to your Maine 529 plan until the aggregate balane per beneficiary reaches $380,000.  Of course, your total amount in the plan can be higher as your investments group.  529 plans typically increase the contribution limit over time, so you may be able to contribute more.

Tax Benefits: Good news for Maine residents -- by investing in your state's 529 plan, you can deduct up to $250 on your adjusted gross income.  You also get federal income tax benefits as you do not pay income tax on your earnings.  Out-of-state participants still get the federal tax benefits.

Other Benefits: Maine residents used to receive matching grants, but the state has ended these.

Residency: NextGen College Investing Plan - Select Series is open to all United States residents, not just those in Maine.

You can learn more about this Maine 529 plan at the official website http://www.nextgenplan.com/.

Need Help?

Contact a 529 and college savings plan advisor in your area.

Click here.