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The New Parent’s Guide to 529 Plans

The New Parent’s Guide to 529 Plans

As you cherish this time together with your growing family, Maryland 529 is here to help.

What’s best for them? Like many new parents, it’s a question you keep asking yourself again and again. And while it may be difficult to think about saving for future higher education expenses when college is 18 years away – or longer – saving now can help make a big difference later. Maryland 529 offers flexible and affordable plans that give your child the freedom to pursue their dreams.

Learn more about how Maryland 529 plans work

What is a 529 plan?

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Maximizing your State income tax deduction

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Advantages of saving for college rather than borrowing

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About the plans

Prepaid College Trust

Maryland Senator Edward J. KasemeyerPrepaid College Trust

Secure tomorrow’s tuition at today’s prices and use your plan at any federally accredited university or college nationwide.

The Prepaid College Trust offers:

  • Flexibility—Purchase one semester up to four years of college. Choose from different tuition plan and payment options that can be changed at nearly any time.
  • Peace of Mind—Your Account is backed by a Maryland Legislative Guarantee.
  • Unique Tax Benefits—You may be eligible for federal and Maryland State tax benefits.
  • Enrollment Age Options—Open to 12th graders or younger, including newborns.

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Prepaid College Trust

Maryland Senator Edward J. KasemeyerCollege Investment Plan

Save for education your way with the freedom to choose how much and how often you want to invest based on your budget and goals.

The College Investment Plan offers:

  • Affordability—Begin with just $25.
  • Freedom to Choose—From a broad range of investment options managed by T. Rowe Price, an investment leader with more than 80 years experience.
  • Flexibility—Use your plan at nearly any public or private college, trade/technical schools, certified apprenticeship programs or K-12 schools nationwide.
  • Unique Tax Benefits—You may be eligible for federal and Maryland State tax benefits.
  • Availability—Open an Account anytime for anyone.
  • Gifting—Enroll in GoTuition®​ gifting portal a convenient way for friends and family to turn traditional gift giving into the gift of an education.

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New Parents FAQs

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We're Here To Help. Have additional questions? Please contact one of our College Savings Specialists at 888-4MD-GRAD (888-463-4723). Hours and more specific contact information by plan can be found here.
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. Please check with your state or a tax advisor regarding the specific tax rules for your state.
While distributions from 529 college savings plans for elementary or secondary education tuition expenses are federally tax-free, state tax treatment will vary and could include state income taxes assessed, the recapture of previously deducted amounts from state taxes, and/or state-level penalties. You should consult with a tax or legal advisor for additional information.