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Yes. You can open an account before a child is born or adopted by designating yourself as the beneficiary. Since a Social Security Number (SSN) is required for the person being named as a beneficiary, once the child has received their SSN, you may change the beneficiary on the account. To avoid tax consequences, it is important that the initial beneficiary be a family member of the expected child, as defined by the IRS. Gift and estate tax issues can be complex; see a tax professional to discuss your situation in detail.

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 who 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 to ask friends and family to contribute to your child's College Investment Plan account. Be sure to mention that making a gift to 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 College Investment Plan account, even if it's not their own.

If you are establishing a new account, there will be an option to add a recurring contribution 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 College Investment Plan account, and the Ugift^® gifting portal makes it easy. Learn more.

The maximum that can be invested for a beneficiary (regardless of the 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 College Trust). 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 exchange your existing 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. These changes can be completed by logging in to your account.

You can also call 1.888.463.4723, 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, unless the account was funded with the proceeds from an UGMA/UTMA account.

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, 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 in to 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 College Investment Plan before you can take a distribution and use your savings other than allowing reasonable time for checks to clear.

No. The College 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 Description.

Currently, Maryland taxpayers can receive a maximum $2,500 subtraction from their State adjusted gross income annually per beneficiary for contributions to the College 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 College 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 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.

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 10% federal tax penalty. You should check with your tax professional regarding the tax consequences of closing your account.

You can also choose 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 that 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.

Benefits must be used to pay for a normal full-time (or half-time) course load for the number of semesters or years of undergraduate education specified in the tuition plan purchased. The Prepaid College Trust contract must be in effect for at least three years before benefits will be paid. Benefits will be paid no earlier than the first fall academic semester of the beneficiary’s project college enrollment year.

Benefits Payable

Maryland Public Colleges: If your beneficiary attends a Maryland 4-year public college as a full-time student, we will pay the full in-state tuition for a University Plan. If your beneficiary attends a 2-year Maryland community college, we will pay the full in-county tuition for a Community College Plan.

Private or Out-of-State: If your beneficiary attends an eligible institution that is private or out-of-state as a full-time student, we will pay the actual tuition each semester (or the equivalent) up to a maximum of one half of the weighted average tuition in the tuition plan you purchased or your minimum benefit, whichever is greater. If your tuition for the private or out-of-state eligible institution is less than the weighted average tuition, you will only receive the tuition. If tuition is less than your minimum benefit however, you may submit documentation of qualified higher education expenses and receive reimbursement up to your minimum benefit.

Summer/Winter Courses: In order to use benefits for summer/winter term courses, you must have excess benefits and your beneficiary must be enrolled on at least a half-time basis as defined by the college.

The WAT is calculated as follows: for 4-year eligible Institutions — dividing (A) the in-state tuition at each 4-year Maryland public college multiplied by the number of full-time equivalent in-state students enrolled at such 4-year Maryland public college, added together by (B) the total number of full-time equivalent in-state students enrolled at all 4-year Maryland public colleges. The WAT applicable to community colleges is calculated by a similar method using in-county tuition and enrollment.

The WAT for the 2024-2025 academic year is $11,127.12 for 4-year public colleges and $4,980.33 for community colleges.

The Trust will not pay for more than 15 credit hours for each semester (or the financial equivalent). The Trust will pay for a maximum of two semesters of mandatory fees (or the equivalent) for each year of benefits purchased for a beneficiary. If tuition, fees, or qualified higher education expenses are more than the benefits paid under your contract, you or your beneficiary is responsible for the difference.

Minimum benefits means payments duly made under your contract, minus operating expenses, plus a certain rate of return. See Article V - benefits of the disclosure statement for further details on your minimum benefit calculation.

If the total of tuition at an eligible institution is less than the minimum benefit, you may use the difference to pay for other qualified higher education expenses such as room and board and books.

A Medallion Signature Guarantee is a legally binding endorsement that ensures that your signature is genuine and that the financial company issuing the guarantee accepts liability for any forgery. MedallionSignature Guarantees can be obtained from some banks, savings institutions, and brokerdealers. While the State Treasurer’s Office reserves the right to require a Medallion Signature Guarantee at any time, it must be included on applicable forms in the following instances:

• for all refund requests;

• for payment requests of $25,000 or more;

• when there is a request to send a check to an address not on file

As of June 1, 2023, prior to using any benefits and subject to the limitation described below, you may convert your contract from one tuition plan to a different tuition plan. Upon each request for a contract conversion, the contract will be revalued to determine whether additional contract payments would be required or if a refund should be made. Only conversions that do not result in the payment of additional contract amounts will be allowed to proceed.

Please be advised that a conversion may have tax consequences. Please consult with your tax professional for specific details.

To convert you plan to another type, complete section 7 and 9 of the Account Maintenance Form and log in to your account to upload the completed form for processing.

After we’ve processed your documents (typically up to 5 - 7days after submission), you can check your benefits payment information in just three clicks:

• for all refund requests;

• for payment requests of $25,000 or more;

• when there is a request to send a check to an address not on file

Additionally, you will receive an email confirmation when your request is submitted and the issued benefits claims payment will be sent to your requested recipient along with a stub confirming the principal and earnings information.

Maryland taxpayers receive a maximum $2,500 subtraction from their Maryland adjusted gross income annually per account for payments made to the Prepaid College Trust. Payments made in excess of $2,500 per account in a single year may be carried forward and subtracted from your Maryland adjusted gross income in consecutive future years until the full amount contributed to the account has been subtracted, subject to the $2,500 annual limit.

Any Maryland taxpayer, including yourself as the account holder, along with other individuals such as a relative or a friend, who make contributions to your Account may be eligible to take the income subtraction. Consult with your tax professional.

For additional information, please refer to www.marylandtaxes.gov

To be eligible to receive the State contribution you must make the minimum contribution of $25, $100, or $250, based on your household income (as verified by the Office of the Comptroller of Maryland), no later than November 1. You must make the minimum contribution into the account(s) in which you applied for the State contribution.

If the applicant is deemed eligible and makes the required contribution to the account no later than 11:59 pm on November 1 of the same year, State contributions will be received by December 31 of the calendar year in which the account owner made the contribution, contingent upon the State providing funding for the Program.

If you receive a State contribution for any account in a given year, you are not eligible for the income subtraction on your State taxes for contributions that you made to that or any other Maryland College Investment Plan account in that year. Current Investment Plan account owners who do not receive a State contribution, however, are still eligible to receive a Maryland income subtraction of up to $2,500 per year, per beneficiary for contributions made to the account.

Call 1.888.463.4723 and select Option 1, or email clientservice@maryland529.com