Saving for College the Smart way - 529 Plans          

 

Washington DC 529 Plan

Washington D.C. offers one 529 college savings plan, a traditional 529 savings plan called the D.C. College Savings Plan. Saving for college has never been easier thanks to the Washington DC 529 Plan. 

D.C. College Savings Plan

The D.C. College Savings Plan 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 and Advisor-Sold – Washington D.C.’s 529 plan can be purchased directly or through a financial advisor.

Fund Family: Calvert Asset Management Company, Inc.  

Minimums: To get started you can deposit $100, set up a monthly payment plan of only $15, or set up a payroll deduction plan of $15.  The minimum subsequent contribution to D.C.'s 529 plan is $25 by automtic bank contribution, $100 by check, or $15 by payroll deduction.

Maximum Contributions:  Currently, you can contribute up to $260,000 to your Washington D.C. 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 D.C. residents -- by investing in Washington D.C.'s 529 plan, you can get a deduction of up to $4,000 on your district income taxes for single filer and $8,000 for married filers.  This number was increased in June 2008.  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.

Residency: The D.C. College Savings Plan is open to all United States residents, not just those in D.C.

You can learn more about the this 529 plan at the official web site.

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