Maryland 529 and Your Clients

If your clients are weighing the options for their children’s future education savings, Maryland 529 is a good place to start. Maryland 529’s plans offer flexible options that let them save in accordance with their individual budgets and investment styles, unique Maryland tax benefits, and like any 529 plan, potential tax-deferred growth on any earnings.

Benefits of the Maryland College Investment Plan

With the Maryland College Investment Plan, your clients will enjoy many benefits. Your clients can decide exactly how they want to save with the Maryland College Investment Plan (also referred to as the College Investment Plan), managed by T. Rowe Price, an investment management firm with more than 80 years of experience. Benefits include:

Affordability – Save as little as $25 with Automatic Contributions in the College Investment Plan.

Flexibility – Use savings at eligible colleges, trade and technical schools nationwide.

Tax Benefits – Maryland 529 plans are the only plans that offer Maryland taxpayers a Maryland State income subtraction of up to $2,500 per year, per College Investment Plan Beneficiary and/or per Prepaid College Trust Account*.

Saving in a 529 and Financial Aid Impact

In general, if the parent is the account holder and the child is the beneficiary of the 529 account and is a dependent student, the money saved in a 529 account is typically considered a parental asset.

In that case, the family can expect the student's need-based aid package to be reduced by up to 5.64% of the asset's value. For more information visit Federal Student Aid.

Help Your Clients Save for Future Education

Contact us to request electronic or printed copies of plan information materials.

Invite a representative from Maryland 529 to conduct a joint presentation for your clients.

Please note that the availability of tax or other benefits may be conditioned on meeting certain requirements such as residency, purpose for or timing of distributions, or other factors, as applicable. Earnings on a distribution not used for qualified expenses may be subject to income taxes and a 10% federal penalty. State tax laws and treatment may vary. You should consult with a tax or legal professional for additional information.

 

*

As of June 1, 2023, the Maryland Prepaid College Trust is no longer accepting new enrollments.