An official website of the State of North Dakota
According to the National Retail Federation, Americans plan to spend an average of $830 on Christmas gifts and other holiday items this year. Unless you happen to be an extraordinary gift-giver, chances are that a portion of those gifts will be forgotten, thrown away, or re-gifted.
What gift can you give that you know your friends and family with children will appreciate for years to come? Have you considered the gift of a college education?
With a College SAVE account, you can start saving now for your child, or someone else’s. The money you invest in the account grows tax-free and your contributions are tax-deductible. Read about more advantages below or visit our website to apply. And if you already have an account, consider using the Ugift platform that is available for you to invite family and friends to contribute to your College SAVE account.
Tax deductions
North Dakota taxpayers can deduct up to $5,000 if filing single, or up to $10,000 if married, filing jointly, from their North Dakota state taxable income for their College SAVE contributions.* You do not need to be the account owner to take advantage of this tax deduction.
There is also a federal annual gift tax exclusion of $16,000 if filing single or $32,000 if married, or filing jointly. Contributors may make up to an $80,000 contribution if filing single or $160,000 if married, filing jointly, free of the gift tax if they elect to take that amount into account proportionately over five years.
Match programs to help most North Dakotans
Three match programs are available to help a majority of North Dakotans.
- The New Baby Match: Bank of North Dakota matches up to $200 in contributions for North Dakota newborns, 12 months old or younger, when a College SAVE account is opened for them.
- Kindergarten Kickoff Match: This program provides a $100 match into a new or existing College SAVE account when a child enters kindergarten and $100 in contributions are received within 12 months of applying for the match and before the child turns seven years old.
- BND Match Program: This program matches up to $300 in contributions for residents earning less than $80,000 annually ($120,000 if married, filing jointly).
Why use a 529 plan?
The 529 Plan is named after the IRS code section describing it. It is a tax-advantaged program created by Congress to help families like yours save for future education expenses. Most 529 plans are sponsored by individual states to encourage their residents to save for college.
When you enroll in a 529 plan, you will be able to choose from a variety of professionally managed portfolios. You determine the level of risk you are comfortable taking. It is never too late to start saving in a 529 plan, but the earlier you start, the longer your money will have to work to your advantage.
A gift that makes a difference
A College SAVE gift is an investment in a young person’s life, potentially changing the course of their future. Think ahead a few years. Your loved one will walk across the stage to accept a college degree, prepared to take on the world with a new career, and with a sense of accomplishment because of your investment in their future.
Priceless.
*Rollovers from another state’s 529 Plan are not considered eligible for the state income tax deduction.
The BND Match, New Baby Match and Kindergarten Kickoff Match are subject to the availability of funds and can be reduced, modified or stopped at the discretion of Bank of North Dakota.
To learn about the College SAVE Plan, its investment objectives, risks and costs, carefully consider the Program Description available at www.collegesave4u.com before investing. Ascensus Broker Dealer Services, LLC is the distributor. If you are not a North Dakota taxpayer, consider before investing whether your or the Beneficiary’s home state offers a 529 Plan that provides its taxpayers with favorable state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that may only be available through investment in the home state’s 529 Plan.
Not FDIC Insured. No Bank, State or Federal Guarantee. May Lose Value.