At first, 529 plans were created as a way for states to help their residents save for college. Over time, they have expanded to support a much broader range of educational goals—from kindergarten to college and many paths between and beyond.
This article is sponsored by the DC College Savings Plan.
The savings tool DC families count on
Since 2002, The DC College Savings Plan has helped more than 43,000 families across the District save over $1.6 billion—and counting. With the cost of education on the rise, it offers a simple, smart solution with special features like:
- Tax advantages including tax-free withdrawals1 and a DC tax deduction up to $8,0002
- Minimal investment of only $25 to get started
- Flexible investment options
- Easy online enrollment and account management
Who is The DC College Savings Plan for?
Whether you are saving for a child, grandchild, or your own education goals, the DC College Savings Plan can help you prepare for what comes next.
Any earnings are tax deferred and savings can be withdrawn tax-free to pay for qualified education expenses1 such as tuition, fees, room and board, books, computers, and even student loan repayments at:
- Eligible colleges, universities, and grad schools
- Vocational schools
- Registered apprenticeships3
- K-12 private, public, or parochial schools
Why save now?
You do not need to have it all figured out. Simply starting today can help prepare your child for more opportunities tomorrow. And the earlier you start, the more time you give your savings to potentially grow.
Contributing consistently—even small amounts—can add up over time, especially with the combined power of compound interest and tax advantages.
With convenient online account management and the READYSAVETM 529 mobile app, it is easy to track progress and contribute to the account when your budget allows or establish recurring contributions to make saving automatic.
You can also invite family and friends to give the gift of education savings for special occasions like birthdays or holidays with Ugift®.
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Learn moreorenroll online today.
What if plans change?
If your child’s plans change, you have options. The DC College Savings Plan offers flexibility so no matter what path your loved one chooses, your savings can still work for you.
- Transfer the account to another beneficiary in the family, or yourself4
- Roll it over to a Roth IRA5
- Use the money for other purposes (taxes and penalties may apply)
Get started today
This year marks 30 years of 529 plans helping families save for education with confidence. Today, The DC College Savings Plan continues that legacy here in the District by providing a flexible, tax-advantaged way to take meaningful steps toward your education goals. Ready to take that first step?
Learn more orenroll online today.
1Earnings on non-qualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as state and local income taxes and recapture of DC tax deductions. Tax and other benefits are contingent on meeting other requirements and certain withdrawals are subject to federal, state, and local taxes.
2DC 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).
3The apprenticeship program must be registered and certified with the Secretary of Labor under the National Apprenticeship Act.
4Section 529 of the Internal Revenue Code defines a family member as: A son, daughter, stepson or stepdaughter, or a descendant of any such person; a brother, sister, stepbrother, or stepsister; the father or mother, or an ancestor of either; a stepfather or stepmother; a son or daughter of a brother or sister; a brother or sister of the father or mother; a son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law; the spouse of the beneficiary or the spouse of any individual described above; or a first cousin of the beneficiary. Gift or generation-skipping transfer taxes may apply. Please consult with your tax advisor for further information.
5Subject 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.
