Rhode Island 529 plan

Rhode Island 529 Plan:

Program match on contributions: The program will annually match up to $500 in contributions from low- and moderate-income Rhode Island residents to an account opened before the beneficiary reaches age 11. The match can extend for a maximum five years. For 2007 contributions, the match is $1-for-$1 for a family with adjusted gross income of $65,001 to $80,000, and $2-for-$1 for a family with adjusted gross income of $65,000 or less. The application to match 2007 contributions must be submitted by April 30, 2008.

State tax deduction or credit for contributions: Contributions to the Rhode Island 529 plan of up to $500 per year for an individual taxpayer, and $1,000 per year for married taxpayers filing jointly, are deductible in computing Rhode Island taxable income, with an unlimited carryforward of excess contributions. Only contributions made by the account owner are deductible. Rollovers from another 529 plan are not deductible. Contribution deadline is December 31.

State tax recapture provisions: The principal portion of rollovers and nonqualified withdrawals from this plan within two taxable years of the contribution are included in Rhode Island taxable income to the extent of prior Rhode Island tax deductions.

Age-based investment options:

No vanguard fund option

Static investment options: Select among three multi-fund portfolios (Appreciation, Balanced, and Preservation), a stable value portfolio (Principal-Protection Income Portfolio), and ten individual-fund portfolios. A dollar-cost averaging option provides for automatic monthly reallocations between any of the portfolios.[One Vanguard fund available to Rhode Island residents: Total Stock Market Index

Expenses: 0.39% - 1.53%


 * Direct link to 529 Plan site