North Carolina 529 Plan
North Carolina offers one 529 college savings plan, a direct plan called North Carolina's National College
North Carolina's National College Savings Program
North Carolina's National College Savings Program is a traditional NC 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 529 plan can be purchased directly through the state.
Fund Family: Various
Minimums: To get started you can deposit $25 in your NC 529, and minimum subsequent
contributions are also $25.
Maximum Contributions: You can contribute until your account balance hits $400,000 in
your North Carolina 529 plan. Of course, your total amount in the plan can be higher as your investments
grow. North Carolina adjusts its limit annually based on the cost of four years of undergraduate
and three years of graduate or professional study at the most expensive institution.
Tax Benefits: Good news for North Carolina residents - by investing in a NC 529 plan, you
can deduct up to $2,500 on your state income taxes for single filer and $5,000 for married filers. 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: Through your North Carolina's National College Savings Program, you have the
option to be a part of a reward program set up by Upromise®. By making purchases with your card, the reward
program offers a percentage of purchases that convert into rewards points, and ultimately convert into account
Residency: North Carolina's National College Savings Program is open to all United States
residents, not just those in North Carolina.
You can learn more about North Carolina’s 529 plan at the official website http://www.cfnc.org/nc529/main/index.jsp .