The Perfect Month to Celebrate College Savings
May is the perfect month to recognize and celebrate 529 college savings plans. Why? Because like May flowers–with investment and time—they grow. Bank of North Dakota and KX News Network have partnered and are celebrating 529 plans in May by giving away five $529 contributions.
Visit the collegesave4u.com to enter the drawing. Registration ends May 29, 2020 with the five winners being announced May 30 during a local KX News broadcast. The $529 contributions can be used to open a new College SAVE 529 account or added to an existing account.
Instituted by the Internal Revenue Service, 529 accounts help people save for college and offer tax advantages. In North Dakota, College SAVE is the state’s 529 plan. The plan, administered by Bank of North Dakota (BND), allows investments to grow state and federal income tax free. Contributions up to $5,000 (up to $10,000 if married, filing jointly) are also deductible from North Dakota income taxes.* You do not need to be the account owner to take advantage of this tax deduction.
At BND, we believe College SAVE is critical in helping our residents plan for future higher education expenses. It’s easy to get started. Anyone can open an account with as little as $25 for a child of any age and its match programs help people save even more.
College SAVE match programs help you to achieve more with your college savings.
The New Baby Match program offers $200 to every newborn in North Dakota when an account is started by the child’s first birthday. To receive the match, you must contribute $200 within 12 months from the date you open the account. There are no income restrictions.
The BND Match program offers a $300 contribution. To qualify, you must have a College SAVE account and meet the income requirements which begin at $120,000 federally adjusted gross income or below for married couples. Four of five North Dakota residents qualify.
How can the funds be used?
Money in your College SAVE account may be used for qualified distributions at any school in state or out of state. Qualified expenses include room and board, books, fees, tuition and computer equipment. A recent development now allows for qualified expenses to include elementary and secondary tuition at public, private and religious schools K-12. To learn more visit collegesave4u.com.
*Rollovers from another state’s 529 Plan are not considered eligible for the state income tax deduction.