Maryland College Investment Plan
Frequently Asked Questions
What is the Maryland College Investment Plan?
The College Investment Plan is a Section 529 plan offered by the College Savings Plans of Maryland and managed by T. Rowe Price. The College Investment Plan is designed to help individuals and families save for college in a tax-advantaged way, and offers valuable advantages, including tax-deferred growth potential, generous contribution limits, attractive investment options, and professional investment management.
How does the Maryland College Investment Plan work?
When you enroll in the College Investment Plan, you choose to invest in one or more of 13 different Investment Options, which are either enrollment-based or fixed portfolios, based upon your investing preferences and risk tolerance. All of the contributions made to your Account grow tax-deferred, and the distributions are federally and Maryland State tax-free if used for Qualified Expenses.
Is my Maryland College Investment Plan Account guaranteed?
No. The College Investment Plan is not insured or guaranteed. Investment returns will vary depending upon the performance of the Investment Portfolios you choose. Depending on market conditions, you could lose all or a portion of your investment.
How do I open an Account?
To open an Account, we must receive a completed New Account Enrollment Form, which is a contract between the Account Holder and the Maryland College Investment Trust, establishing the obligations of each. You may enroll online, mail in your Enrollment Form, or visit a T. Rowe Price Investor Center. We cannot process the New Account Enrollment Form if any of the required information, including your signature, is not provided. The Trustee has the sole discretion to determine whether an Enrollment Form is complete and accepted and whether the Account has been opened.
How many Accounts can I open?
You can open an Account for as many Beneficiaries as you wish. You may also invest in one or more of the 13 Investment Portfolios for each Beneficiary. Please keep in mind that each Account may have only one Account Holder and one Beneficiary, and you must complete a new Enrollment Form for each different Beneficiary.
What are the fees associated with the Maryland College Investment Plan?
The College Investment Plan has no commissions, loads, sales charges, or enrollment fees. There is an Annual Account Fee, which may be waived in certain circumstances. There is also a Program Fee and fees associated with the underlying funds in which the portfolios invest. A detailed description of fees associated with the Maryland College Investment Plan can be found in the section titled Fees and Costs
(Disclosure Statement PDF) starting on page 3.
How does the State income deduction work for the Maryland College Investment Plan?
The State income deduction is available only to Maryland taxpayers. Currently, Maryland taxpayers receive a maximum $2,500 deduction from their State adjusted gross income annually per Beneficiary for contributions to the College Investment Plan. The Account Holder is the only person who can take advantage of the Maryland State income deduction for contributions he or she has made. Contributions made in excess of $2,500 per Beneficiary in a single year may be carried forward and deducted from your State adjusted gross income for up to 10 additional years. The following example helps to illustrate how this deduction applies:
Can I change my Investment Options?
- If you contribute $27,500 in Year 1 to an Account (or into more than one Account) for your daughter, you can deduct $2,500 per tax year for each of Years 1 through 11 (11 x $2,500 = $27,500). If you also contribute $27,500 in Year 1 to an Account (or into more than one Account) for your son, you can deduct an additional $2,500 per tax year for each of Years 1 through 11, for a total deduction of $5,000 per tax year from State adjusted gross income.
- For additional information on College Investment Plan tax benefits for Maryland taxpayers, please refer to Maryland Income Tax Administrative Release No. 32, or 1-800-MD-TAXES.
- To take advantage of this income deduction for a particular year, your contribution needs to be postmarked by December 31 of that year.
- If you move out of the State and no longer pay Maryland income tax, you will no longer receive the Maryland State income deduction. You should check with your new state of residence regarding the state tax benefits, if any, available for your 529 plan investment.
You may change your Investment Options twice per calendar year, per Beneficiary. If you have multiple Investment Options for a Beneficiary, all changes for that Beneficiary must be requested on the same day. For more information on making changes to your Account, see Maintaining Your Account
(Disclosure Statement PDF) starting on page 21.
When can I enroll a newborn infant?
A newborn may be enrolled year-round. You may also open an Account naming yourself as the Beneficiary in anticipation of the birth or adoption of a new child.
Where can I find additional forms and Enrollment Kits?
To obtain forms relating to the College Investment Plan or additional Enrollment Kits, go to the forms section
on this site or call 888.4MD.GRAD (463.4723).
How can I receive a Distribution?
You can choose to receive your distribution by check or electronically. Checks are generally mailed 1-2 days after your distribution is processed.
Distribution proceeds can be deposited electronically into the Account Holder or Beneficiary's bank account on file. You have two options for receiving your distribution electronically:
- Automated Clearing House (ACH): Generally received 2-3 business days after your distribution is processed. ·
- Wire transfer: Generally received 24-48 hours after your distribution is processed. Please note that your bank may charge you a fee to accept a wire transfer.
For additional information on distributions, please click here
Can I use my Upromise contributions to fund my Maryland College Investment Plan account*?
Yes. You can withdraw funds from your Upromise account at any time during your membership. You would need to submit a letter in writing to Upromise requesting a withdrawal from your Upromise account. The letter must state your full name, account number, address, telephone number and the exact amount that you would like to withdraw, up to the total amount available in your account. Pending contributions are not eligible for withdrawal.
Upromise requires that the letter either be notarized or contain a Signature Guarantee for withdrawal requests in excess of $1,000. A Signature Guarantee is a guarantee you can obtain from a financial institution, such as your bank, that your signature is yours and that it is genuine.
If your withdrawal is under $1,000 or does not need to be notarized or contain a Signature Guarantee, you may fax the request to 617-559-2481. Otherwise you may send your letter to:
ATTN: Customer Care
P.O. Box 55555
Boston, MA 02205-5555
Checks are sent once per calendar quarter, so you should typically receive your check within 12 weeks of your request being received by Upromise. Once you have received and cashed your Upromise contribution withdrawal check, then write a check for the amount you would like to contribute to your Maryland College Investment Plan account. Please note that the minimum contribution per portfolio is $25.00.
Please make your check payable to:
Maryland College Investment Plan
Write your account number on the check and mail it to us at:
Maryland College Investment Plan
P.O. Box 17479
Baltimore, MD 21297-1479
*This information is provided as a service to our Web site visitors. The College Savings Plans of Maryland is not affiliated with, does not endorse, and is not endorsed by Upromise.