Saving for College the Smart way - 529 Plans          

 

Rhode Island 529 Plans

Rhode Island offers two 529 college savings plans, a direct plan called CollegeBoundfund and a direct and advisor-sold tuition plan called CollegeBoundfund.

 

CollegeBoundfund

CollegeBoundfund 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: AllianceBernstein Investments, Inc. and The Vanguard Group®

Minimums:  To get started you can deposit as little as $1 per month, or an initial investment of $250.

Maximum Contributions:  Currently, you can contribute until the contributions and earnings in your Rhode Island 529 plans totals $395,000.  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:  Rhode Island residents - by investing in your state's 529 plan, you can deduct up to $500 on your state income taxes for single filer and $1,000 for married filers.  There is a limited contribution grant program.  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: Children born or adopted after July 1, 2010 as a Rhode Island resident get $100 contributed to their account. The previous Matching Grant Program has been discontinued.

Residency: Collegeboundfund is open to all United States residents, not just those in Rhode Island.

You can learn more about this Rhode Island 529 plan at the official website http://www.alliancebernstein.com/ri/home.aspx.

 

CollegeBoundfund (Adviser)

CollegeBoundfund 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 & Advisor – this 529 plan can be purchased directly through the state or with the help of a qualified financial advisor.

Fund Family:  AllianceBernstein Investments, Inc.
 
Minimums:  To get started you can deposit $1,000 ($250 for Rhode Island residents). Minimum subsequent contributions are $50 and no minimum for Rhode Island residents.

Maximum Contributions:
  Currently, you can contribute until the contributions and earnings in your Rhode Island 529 plans totals $395,000.  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:
  By investing in your state's 529 plan, you can deduct up to $500 on your state income taxes for single filer and $1,000 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:  Children born or adopted after July 1, 2010 as a Rhode Island resident get $100 contributed to their account. The previous Matching Grant Program has been discontinued.

Residency:  Collegeboundfund is open to all United States residents, not just those in Rhode Island.

You can learn more about this Rhode Island 529 plan at the official website http://www.alliancebernstein.com/investments/us/TOC4.aspx?nid=5360.

 

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