District of Columbia 529 plan

District of Columbia 529 Plan


 * Open to Residents
 * Not open to non-residents

Program match on contributions: None

State tax deduction or credit for contributions: Contributions to the District of Columbia 529 plan of up to $4,000 per contributor per year are deductible in computing District of Columbia taxable income, with a five-year carryforward of excess contributions. Only contributions made by the account owner are deductible. Rollover contributions are not deductible. Contribution deadline is December 31 postmark.

State tax recapture provisions: The principal portion of nonqualified withdrawals from this plan, and rollovers within two years of account opening, are included in District of Columbia taxable income to the extent of prior District of Columbia tax deductions. Nonqualified withdrawals for this purpose do not include withdrawals made as the result of the beneficiary's death or disability and withdrawals made on account of the beneficiary's receipt of a scholarship.

Age-based investment options: The Age-Based Option contains five portfolios of underlying funds. Contributions are placed into the portfolio corresponding to the beneficiary’s age or as selected by the account owner, and later reassigned to more conservative portfolios as the beneficiary approaches college age. Account owners have the option to freeze the account at any particular portfolio. [No indexed options]

Static investment options: Select among seven individual-fund portfolios (Income, Balanced, Equity Index, two U.S. Large Cap Equity, U.S. Mid Cap Equity, and two U.S. Small Cap Equity funds), and the Stability of Principal Investment Option.

Single Funds
 * State Street Equity Index 500 (ER 0.50%)

Expenses: 0.50% - 1.89%; Principal Plus option: 0.15%


 * Plan site
 * Plan document

Links

 * Morningstar Overview
 * State Creditor Protections for 529 Plans