North Carolina 529 Plan

North Carolina offers one 529 college savings plan, a direct plan called North Carolina's National College Savings Program.

North Carolina's National College Savings Program

North Carolina's National College Savings Program 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 529 plan can be purchased directly through the state.

Fund Family:  Various

Minimums:  To get started you can deposit $25, and minimum subsequent contributions are also $25.

Maximum Contributions:  Currently, you can contribute up to $358,496 to your North Carolina 529 plan.  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 North Carolina residents - by investing in your state's 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 the same benefit for federal income taxes.  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 contributions.

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/.