North Dakota 529 plan

From Bogleheads
Jump to: navigation, search

The North Dakota 529 plan page provides information on direct-sold 529 plans and highlights indexed portfolios. All information is derived from Savingforcollege.com and from 529 plan sites and disclosure documents. If you would like to compare this plan with other direct sold plans, use these Compare by Plan Name and Compare by Feature tools.

  • Open to Residents
  • Open to non-residents
North Dakota 529 Plan:
Program match on contributions: The College SAVE 529 Matching Grant program provides a one-time match of contributions up to $300 per beneficiary for North Dakota participants with incomes below $40,000 (single) or $80,000 (joint). Contributions within 12 months of the account opening are eligible for the match. The beneficiary must be 12 years of age or younger. For participants with incomes below $20,000 (single) or $40,000 (joint), the match is available for an additional two years.

A Children FIRST Grant of $100 is available for a resident beneficiary child under 12 years of age, without income restrictions.

State tax deduction or credit for contributions: Beginning with the 2007 tax year, contributions to the North Dakota 529 plan of up to $5,000 per year for an individual taxpayer, and $10,000 for a married couple filing jointly, are deductible in computing North Dakota taxable income. Contribution deadline is December 31.
State tax recapture provisions: Apparently none.
Age-based investment options: There are three age-based options (Conservative, Moderate, and Aggressive), each containing up to five investment portfolios. Contributions are placed into the portfolio corresponding to the selected option and age of the beneficiary, and later reassigned to more conservative portfolios as the withdrawal date draws nearer.
Static investment options: Six asset allocation portfolios are offered. The Aggressive Growth, Growth, Moderate Growth, and Conservative Growth portfolios invest in Vanguard stock and bond index funds. The Income Portfolio invests in a Vanguard bond index fund, inflation-protected securities fund, and a money market fund. The Money Market Portfolio invests 100% in the Vanguard Prime Money Market Fund.
Expenses: 0.85%; maintenance fee: $20 annually (waived for North Dakota residents)
Policy Regarding Ownership Changes: Accepts requests to transfer account ownership.

Investment options

Age-based option

The age-based plan utilizes the portfolios listed below. The portfolios have the same allocations as the namesake multi-fund portfolios.

Age-Based Index Portfolios Underlying Funds
Funds

NDagebased.jpg

  • Vanguard Aggressive Growth Portfolio
  • Vanguard Growth Portfolio
  • Vanguard Moderate Growth Portfolio
  • Vanguard Conservative Growth Portfolio
  • Vanguard Income Portfolio


Static

The table below shows the underlying index funds comprising the North Dakota 529 savings plan's multi-fund portfolios.


Static Multi-Fund Portfolios
Vanguard funds
Aggressive Growth

NY-AGrow.png

Growth

NY-Grow.png

Moderate Growth

NY-MGrow.png

Conservative Growth

NY-CGrow.png

Income

NY-Income.png

  • Total Stock Market Index Fund (70%)
  • Total International Stock Index Fund (30%)
  • Total Stock Market Index Fund (52.5%)
  • Total International Stock Index Fund (22.5%)
  • Total Bond II Market Index Fund (25%)
  • Total Stock Market Index Fund (35%)
  • Total International Stock Index Fund (15%)
  • Total Bond II Market Index Fund (50%)
  • Total Stock Market Index Fund (17.5%)
  • Total International Stock Index Fund (7.5%)
  • Total Bond Market II Index Fund (75%)


  • Total Bond Market II Index Fund (50%)
  • Inflation-Protection Securities Fund (25%)
  • Prime Money Market Fund (25%)

External links