How can we help?

Opening your account and getting started on saving for college is simple and takes just a few steps.

• Step 1: Choose from one or more of our investment portfolios.
• Step 2: Open an account online or mail in a completed New Account Form.

Did you know?

You do not have to be a Maryland resident to open an account. However, keep in mind to you must be a Maryland taxpayer to take advantage of the unique Maryland State income subtraction benefit and a Maryland resident to apply for the Save4College State Contribution Program.

You can contribute in a variety of ways:

• Check
• Electronic funds transfer
• Payroll deductions
• Rolling over assets from another Qualified Tuition Program, including the Maryland Prepaid College Trust.
• Rolling over Qualified Tuition Program assets from a different beneficiary that is a family member.
• Moving assets from an UGMA/UTMA account. Consult a tax professional for more information.
• Rolling over assets from a Coverdell Education Savings Account. Consult a tax professional for more information.
• Liquidating assets from other financial instruments such as mutual funds and individual stocks. Consult with a tax professional for more information.
• Redeeming qualified U.S. Savings Bonds. Please visit www.treasurydirect.gov for more information.
• Enrolling in Ugift® a free, online tool that makes it easy for to ask friends and family to contribute to your child's College Investment Plan account. Be sure to mention that making a gift to a your account offers a unique Maryland State income subtraction benefit. Maryland taxpayers can claim up to a $2,500 annual subtraction from their State income for contributions into a Maryland 529 account, even if it's not their own.

If you are establishing a new account, there will be an option to add a recurring contributions to your account during the enrollment process.

If you have an existing account, you can set up recurring contributions by logging in to your account. If you do not already have bank information on file, you will need to add banking information to your account. You can also use the Account Features Form or mail a letter of instruction to add recurring contributions to your account.

Anyone can contribute to your Maryland College Investment Plan account, and the Ugift® gifting portal makes it easy.

Visit the “Gifting” section of the account owner's page to learn more.

The maximum that can be invested for a beneficiary (regardless of number of accounts or account owners) cannot exceed $500,000. The $500,000 limit includes accounts for the same beneficiary in the Maryland Prepaid College Trust. The account balance may grow above $500,000 due to earnings, but no additional contributions can be made at that point.

Yes, rollovers are accepted from other qualified 529 plans (including the Maryland Prepaid CollegeTrust).

Visit Investment Plan Rollovers to learn more.

There are a variety of changes that you can make to your account online. You can:

• Update your contact information
• Add or change your successor
• Make contributions and set up recurring contributions
• Set up dollar cost averaging
• Share your Ugift® code with friends and family
• Make distributions
• View your investment options and complete exchanges
• Change your future allocations
• Add or update banking information
• Sign up for paperless services

You may change your investment options twice per calendar year, per beneficiary. If you have multiple investment options for a beneficiary, all changes for that beneficiary requested together on the same day and having the same trade date are expected to count as one collective change. You can also change your future allocations at any time. Both types of changes can be done by logging into your account.

You can also call 888.4MD.GRAD(463.4723), Option 1 to request this over the phone.

Yes, you can change your beneficiary or transfer a portion of your investment to a different beneficiary at any time with a Transfer Form.

In order for the transaction to be considered a tax-free transfer by the IRS, the new beneficiary must be a member of the previous beneficiary's family, as defined by the Internal Revenue Code, and be a member of the same generation as the previous beneficiary. If the new beneficiary belongs to a generation two or more levels below the original beneficiary, or if the beneficiaries are not related, additional taxes may apply.

Furthermore, gift taxes could apply when the beneficiary is changed, depending on the amount being transferred to the new beneficiary.

Family members include:

• Son, daughter, stepchild, foster child, adopted child, or a descendant of any of them
• Brother, sister, stepbrother, or stepsister
• Father or mother or ancestor of either
• Stepfather or stepmother
• Niece or nephew
• Aunt or uncle
• 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 of any individual listed above
• A first cousin of the beneficiary

Yes. You may transfer ownership to a new account owner unless the account has been funded with the proceeds from an UGMA/UTMA account. Any change of account owner must be requested in writing and include information as determined by the 529 plan. Your right of control may not be sold, transferred, used as collateral, or pledged or exchanged for money or anything of value and you must agree to be bound by the terms and conditions of the plan.

Although it is not required, it is strongly recommended that you designate a successor account owner or custodian to take over the account in the event that you pass away. A successor can be added when the account is set up or at a later date by logging into your account.

For a designation or change of a successor to be valid, it must be received and processed by the plan prior to the account owner's death.

Anytime. There is no requirement for how long you must invest in the Investment Plan before you can take a distribution and use your savings other than allowing reasonable time for checks to clear.

No. The Investment Plan is not insured or guaranteed. Investment returns will vary depending upon the performance of the investment options you choose. Like many investments, the College Investment Plan has a variety of risks. Please read them carefully in the Plan Disclosure Statement.

Currently, Maryland taxpayers can receive a maximum $2,500 subtraction from their State adjusted gross income annually per beneficiary for contributions to the Investment Plan. Contributions made in excess of $2,500 per beneficiary in a single year may be carried forward and subtracted from your Maryland State adjusted gross income for up to 10 additional years.

View our Maryland Tax Benefit Infographic to see an example.

To take advantage of this Maryland income subtraction for a particular year, you must make your contribution by December 31 of that year.

If you set up your bank information online before December 15, you can make a one-time contribution. Be sure to allow enough time for the contribution to be processed through your bank by December 31. You may also contribute by mail and postmark your check by December 31 to be eligible for the subtraction. (Checks postmarked by December 31 but received after that date will appear as the next year's contributions on your account statements).

If you move out of Maryland and/or no longer pay Maryland income tax, you will no longer receive the State income subtraction. You should check with your new state of residence regarding its state tax benefits, if any, available for your 529 plan investment. Additionally, if you receive a State contribution through the Save4College State Contribution Program, you are not eligible to receive the State income subtraction for that account or any other Investment Plan account.

You are responsible for retaining documentation of the timing of your contributions for your tax records. For questions about your specific tax situation, consult with a qualified tax professional.

There are no tax forms issued for 529 contributions. Contribution information is listed on your account statements.

Each January, the Maryland College Investment Plan issues Form 1099-Q for any distributions taken during the previous calendar year. This form is mailed to the beneficiary; however, if the distribution was made payable to the account owner, the form is issued to the account owner instead. An account owner payee can also access the form by logging in to their account online and clicking Profile & Documents from their dashboard.

Qualified education expenses are defined in the Internal Revenue Code. For a complete list, view IRS Publication 970.

For the distributions to be federally tax-free, you have to use the funds for one of the qualified expenses below:

• Colleges, Universities, Graduate Schools, and Technical/Vocational Schools:

  Tuition and fees; room and board; books, supplies, and equipment required for enrollment or attendance; computer and technology needs; and certain expenses for special needs students may be covered. To be a qualified expense, the institution must be considered an eligible educational institution, which is defined in the IRS Code and further explained in IRS Publication 970.

• K-12 Tuition for Public, Private, or Religious Schools*:

  Tuition expenses of up to $10,000 per year, per beneficiary.

• Apprenticeship Programs:

  Books, fees, equipment, and other supplies.

• Education Loan Repayment:

  The principal or interest on a qualified education loan for the beneficiary. There is a $10,000 lifetime maximum per individual.

*While distributions from 529 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 taxes for previously subtracted amounts from state taxable income, and/or state-level penalties. You should consult with a tax professional for additional information.

No, you are responsible for satisfying the IRS requirements for proof of a qualified distribution, which include retaining any paperwork and receipts necessary to verify the type of distribution you receive.

If you take a distribution for something other than a qualified education expense, the earnings portion is subject to federal income taxes and may be subject to a 10% federal tax penalty. State tax treatment varies. Exceptions to the federal penalty apply for non-qualified distributions that are taken under the following circumstances:

• Receipt of a scholarship by the beneficiary (up to the amount of the scholarship)
• Death of the beneficiary
• Disability of the beneficiary
• Attendance at a U.S. military academy (up to the cost of attendance at the academy)

You can close your account by having all of the assets distributed. Keep in mind that if the funds are distributed as a non-qualified distribution, they may be subject to ordinary income tax, as well as a distribution tax. You should check with your tax professional regarding the tax consequences of closing your account.

You can also chose to roll over unused funds to a Roth IRA maintained for the same account beneficiary. The 529 plan account must have been maintained for at least 15 years and only contributions (and accompanying earnings) made more than five years prior can be rolled over. The amount eligible for rollover each year cannot exceed the IRA contribution limit and there is an aggregate limit of $35,000. Complete the Rollover to Roth IRA Form.

In order to request a direct rollover, you should contact the institution which will be receiving the funds, as rollovers are initiated by the receiving institution for your new 529 plan.

To learn more, see the Rollover page.