An official website of the State of North Dakota
According to the National Retail Federation, Americans plan to spend an average of $700 on Christmas gifts this year. Unless you happen to be an extraordinary gift-giver, chances are that a portion of those gifts are going to 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 below for more advantages or visit our website to apply. And if you already own an account consider using the Ugift platform that is available for you to invite family and friends to contribute your College SAVE account.
Tax deductions
North Dakota taxpayers can deduct up to $5,000 (up to $10,000 if married, filing jointly) from their ND 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 $15,000 if filing single or $30,000 if married, filing jointly. Contributors may make up to a $75,000 ($150,000 if married, filing jointly) contribution, 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
Two grant programs are available to help a majority of North Dakotans.
- The New Baby Match Program gives $200 to North Dakota newborns 12-months-old or younger when a College SAVE account is opened for them.
- The BND Match Program gives up to $300 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 that child’s education and future. Think ahead a few years. This young adult will walk across the stage accepting a college degree, prepared to take on the world with a new career, and with a smile of accomplishment says, “Thank you. Because of you, I went to college.”
Priceless.
*Rollovers from another state’s 529 Plan are not considered eligible for the state income tax deduction.