Friday, May 19, 2017

Hurry Up to Get State Matching Grants for College Savings – June 1 Deadline

Last year the Maryland General Assembly  passed legislation to encourage Maryland residents to use the already existing tax deductible 529 College Investment Plans.  If you set up a plan the State will add another $250 to your fund when you make a contribution of as little as a $25, depending on your annual income.  But the deadline to apply for this state grant is June 1st.  So if you are interested, you should set up a plan today and apply for a grant by June 1. If you already have a plan think of having a relative set up a plan for one of your chilrden or set one up for one of your relatives who needs savings for college in order to get the state matching grant.

Saving for college is a challenge for many families. That's why the State of Maryland and Maryland 529 want to help Maryland families through the Save4College State Contribution Program.

The Save4College State Contribution Program is designed to help lower- to middle-income families in Maryland save money for higher education. Individuals who open a new Maryland College Investment Plan (MCIP) after December 31, 2016, file an application prior June 1, 2017, and make at least the minimum contribution to the account ($25, $100, or $250, depending on income – see the table on their website) may receive a $250 contribution by the State.

How Does It Work?

To be eligible, an applicant must meet the following requirements:

The beneficiary must be a Maryland resident.  It can be for any relative (through blood or marriage).

Your Maryland taxable income cannot exceed $112,500 as an individual or $175,000 as a couple.

You must open a Maryland College Investment Plan and submit your application for the Save4College State Contribution Program and file an application prior to June 1 of each year. 
If you open a new account the initial contribution requirement will be waived, and you do not need to make a contribution at the time you open the account. You must make the minimum contribution of $25, $100, or $250, based on your household income, between July 1 and November 1.

For more information and to file an application: . Do it today.