Between packing lunches, managing schedules, and planning for what comes next, thinking a few steps ahead is second nature for parents. That often includes saving for your child’s future—and you may already be doing so.
This article is sponsored by the DC College Savings Plan.
Still, where you save can make a difference. Financial Literacy Month is a great time to revisit your approach and explore options, like the DC College Savings Plan, that offer added benefits to help your savings go further.
Where you save, and when you start, make a difference
Education costs continue to rise, and while it may seem far off when your child is young, that time goes fast. Starting early, even with small amounts, can make a meaningful difference over time.
A 529 plan is a simple, flexible, and tax-advantaged way to help your savings work harder for the future.
What is the DC College Savings Plan?
The DC College Savings Plan is a 529 plan created to help families across the District of Columbia save for education in an affordable and approachable way.
Any earnings are tax deferred, and withdrawals are completely tax free1 when used for qualified education costs like tuition, fees, room and board, books, computers, and even student loan repayments for:
- Eligible colleges, universities, and grad schools
- Vocational schools
- Registered apprenticeships
- K-12
DC taxpayers may also qualify for a state tax deduction.2
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Learn more or enroll online today.
What if my child does not pursue education?
If plans change, you have plenty of options. You can transfer the money to another family member, use it for your own education, roll over to a Roth IRA,3 or withdraw funds for other expenses and pay any applicable taxes and fees.
What if I decide to go back to school?
Your 529 savings are not just for your child. You can use the funds for your own continued education, too. As long as you are paying for qualified education costs, withdrawals remain tax-free.1
Gain financial confidence and peace of mind
It is never too late or too early to review how you are saving for your child’s future. Every dollar saved today can help reduce what you need to potentially borrow tomorrow, so the key is just getting started. If you are looking for a flexible, tax-advantaged way to prepare for the cost of education, The DC College Savings Plan could be a smart choice.
Learn more or enroll online today!
1 Earnings on non-qualified distributions may be subject to federal income tax and a 10% federal penalty tax, as well as state and local income taxes. Tax and other benefits are contingent on meeting other requirements and certain distributions are subject to federal, state, and local taxes.
2 DC taxpayers who contribute to the DC College Savings Plan can deduct up to $4,000 in Plan contributions from their federal adjusted gross income each year on their DC tax return (up to $8,000 for married couples or domestic partners filing jointly if both own accounts).
3 Subject to eligibility requirements. Please see the Program Description for more information.
Before you invest, consider whether your or the beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in that state’s qualified tuition program.
For more information about The DC College Savings Plan ("the Plan"), call 800-987-4859, or visit www.dccollegesavings.com to obtain a Program Disclosure Booklet, which includes investment objectives, risks, charges, expenses, and other important information; read and consider it carefully before investing.
The Plan is administered by the District of Columbia Office of the Chief Financial Officer, Office of Finance and Treasury. Ascensus College Savings Recordkeeping Services, LLC, the Program Manager, and its affiliates, have overall responsibility for the day-to-day operations including recordkeeping and administrative services. Ascensus Investment Advisors, LLC serves as the Investment Manager.
The Plan's Portfolios invest in: (i) exchange-traded funds,(ii) mutual funds and (iii) a funding agreement. Investments in The Plan are municipal securities that will vary with market conditions. Investments are not guaranteed or insured by the Government of the District of Columbia, the District of Columbia College Savings Program Trust, the District of Columbia Chief Financial Officer, the District of Columbia Treasurer, the Trustee for the District of Columbia College Savings Program Trust or any co-fiduciary or instrumentality thereof, the Federal Deposit Insurance Corporation or any instrumentality thereof.
INVESTMENTS ARE NOT FDIC INSURED, MAY LOSE VALUE AND ARE NOT BANK GUARANTEED.
