Give your child the freedom to pursue their dreams.

The Maryland Prepaid College Trust and the Maryland College Investment Plan help make saving for college or trade school easy and affordable. Depending on your individual needs, budget, and goals, you can choose one or both plans.

And, Maryland 529 plans are the only plans to offer Maryland taxpayers an annual Maryland State income deduction on contributions of up to $2,500 per Account, or per Beneficiary, depending on the plan you choose.

Watch the Compare Our Plans video to see how they differ or review the Comparison Chart below to get the answers to our most frequently asked questions.

How can I use the plan?
Maryland College Investment Plan

You can use the College Investment Plan at nearly any public, private, or technical college nationwide for Qualified Education Expenses such as tuition, fees, room and board, books, course-specific fees or supplies. For additional information on how savings can be used please visit the Investment Plan page.

Maryland Prepaid College Trust

You can use the Prepaid College Trust to pay the full in-state or in-county Tuition and Mandatory Fees at any Maryland Public College or up to the Weighted Average Tuition toward nearly any private or out-of-state college.

What’s unique about each plan?
Maryland College Investment Plan

The College Investment Plan allows you to choose from a variety of investment options ranging from more aggressive to more conservative investment strategies. Investment returns will vary depending upon the performance of the Portfolios you choose.

Maryland Prepaid College Trust

The Prepaid College Trust allows you to secure tomorrow’s Tuition at today’s prices - meaning your payments are pooled with other Account Holders and invested to fund future Tuition payments. And, it’s backed by the Maryland Legislative Guarantee.

What are the Maryland tax benefits?
Maryland College Investment Plan

Any earnings are Maryland tax-free when used toward Qualified Education Expenses. Each Account Holder or contributor may also deduct up to $2,500 of contributions each year from their Maryland income per Beneficiary—$5,000 for two, $7,500 for three, etc. Contributions in excess of $2,500 can be deducted for up to the next 10 years. Contributions in following years could be eligible for deduction; however, you cannot deduct more than $2,500 per Beneficiary in any year or extend the 10-year limit on each year’s contribution.1

Maryland Prepaid College Trust

Any earnings are Maryland tax-free when used toward Qualified Higher Education Expenses. Each Account Holder or contributor may also deduct up to $2,500 of payments each year from their Maryland income per Account—$5,000 for two, $7,500 for three, etc. Payments in excess of $2,500 can be deducted in future years until the full amount of payments has been deducted.

1

If you receive a State contribution for any Account in a given year, you are not eligible for the income deduction on your State taxes for contributions that you made to that or any other MCIP Account in that year. The Office of the Comptroller of Maryland has confirmed that, if you previously contributed an excess of $2,500 in a given calendar year and you were carrying the excess over to additional, consecutive, calendar years for tax purposes, a State contribution award will disrupt and terminate that carryover period. Any future income deductions, then, would have to be based on contributions made after the year in which you received a State contribution. You should consult a tax professional about your particular circumstances.

Are there federal tax benefits?
Maryland College Investment Plan

Yes. Any earnings are federally tax-free when used toward Qualified Education Expenses.

Maryland Prepaid College Trust

Yes. Any earnings are federally tax-free when used toward Qualified Higher Education Expenses.

What are the age requirements?
Maryland College Investment Plan

Enrollment is open to Beneficiaries of any age.

Maryland Prepaid College Trust

Enrollment is open to Beneficiaries from newborn through 12th grade.

Do I have to be a Maryland resident?
Maryland College Investment Plan

No. There are no State residency requirements.

Maryland Prepaid College Trust

Either the Account Holder or the Beneficiary must be a resident of Maryland or Washington, D.C. when the Account is opened.

When can I enroll?
Maryland College Investment Plan

Any time.

Maryland Prepaid College Trust

Generally, enrollment is open between December and June of each year. Enrollment is open year round for Beneficiaries under the age of one or current Account Holders that wish to open a new Account.

What are my plan options?
Maryland College Investment Plan

You can invest in Enrollment-Based Portfolios, Fixed Portfolios, or a combination of each. Each time you make a contribution, you have the opportunity to select a new portfolio.

Maryland Prepaid College Trust

There are a variety of Tuition plans:

One semester, or one to four years at a four-year college

One or two years at a community college

Combination

You may change your Tuition plan at nearly any time.

What are my payment or contribution options?
Maryland College Investment Plan

You can start with as little as $25 per portfolio.

Maryland Prepaid College Trust

There are several different payment options.

Lump Sum

Annual

Monthly

The cost is fixed by the number of semesters or years purchased, age of child, and payment plan selected. You may change your payment option at any time.

How much can I contribute/purchase?
Maryland College Investment Plan

You can invest up to a maximum Account balance of $500,000 per Beneficiary.

Maryland Prepaid College Trust

You can purchase up to seven years at a four-year college per Beneficiary, with no more than four years on a single Account.

What are the fees and expenses?
Maryland College Investment Plan

Consult the Fees and Expenses section of the College Investment Plan Disclosure Statement that contains information on all applicable fees and expenses.

Maryland Prepaid College Trust

Visit the Prices page or for more details consult the Prices and Fees section of the
Prepaid College Trust Disclosure Statement for information on all applicable fees and expenses.

Why would I choose both plans?

Choosing both plans allows you to benefit from the features of each plan and lets you diversify your higher education savings. You could use the Prepaid College Trust towards Tuition and Mandatory Fees, and the College Investment Plan towards other Qualified Education Expenses such as room and board, books, or additional tuition at private or out-of-state colleges, as well as tuition expenses at K-12 Private School*. By investing in both plans, you may also be eligible for an additional Maryland State income deduction.

College Investment Plan
Prepaid College Trust
*

Distributions from 529 college savings plans for elementary or secondary education tuition expenses are federally and Maryland State tax-free. Outside of Maryland, 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 professional for additional information.