North Carolina 529 plan

North Carolina 529 Plan:


 * Open to Residents
 * Open to non-residents

Program match on contributions: None

State tax deduction or credit for contributions: Contributions to the North Carolina 529 plan of up to $2,500 per year for an individual taxpayer, and $5,000 per year for married taxpayers filing a joint return, are deductible in computing North Carolina taxable income. For years prior to 2007, the maximum deduction was lower. Beginning in 2012, income limitations are imposed.

State tax recapture provisions: The principal portion of rollovers and nonqualified withdrawals from this plan are included in North Carolina taxable income to the extent of prior North Carolina tax deductions. Nonqualified withdrawals for this purpose do not include withdrawals made as the result of the beneficiary's death or disability.

Age-based investment options: The V Fund Age-Based Option offers a choice among three different risk levels (Aggressive, Moderate, or Conservative), each containing five portfolios of underlying Vanguard mutual funds. Contributions are placed into the portfolio corresponding to the selected risk level and number of years to expected enrollment, and later reassigned to more conservative portfolios until the beneficiary reaches age.

Static investment options: Vanguard multifund portfolios are only available in age-based portfolios.

Single Funds

Expenses: 0.30% - 1.40%


 * Direct link to 529 Plan
 * Plan Document

Links

 * Morningstar Overview
 * State Creditor Protections for 529 Plans