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North Carolina 529 Plan

Save on Taxes While Saving for College

Have you heard of 529 Plans? If not, here's the scoop! A 529 Plan is a tax-advantaged education savings plan operated by a state or educational institution and is designed to help families set aside funds for future college costs.

529 Plan accounts are available and maintained by the College Foundation of North Carolina. The 529 account is not an SECU deposit account.

If you are a North Carolina resident, you should consider the North Carolina 529 Plan. Earnings in the NC 529 Plan grow free from federal and NC income tax, and are not taxed by the state of North Carolina or the federal government upon withdrawal, as long as the money is used to pay for your Beneficiary's qualified higher education expenses.

The minimum initial contribution as well as any subsequent contribution is just $25. The maximum balance allowable for 2014 is $410,000 for all NC 529 Accounts with the same Beneficiary.

The NC 529 Plan offers 14 investment options, including an option made available by SECU: the Federally-Insured Deposit Account. You may choose one or more of the investment options. The Federally-Insured Deposit Account option offers income along with protection of principal and earnings and is fully insured by the National Credit Union Administration (NCUA). The NCUA insurance of the Federally-Insured Deposit Account investment option will not affect the NCUA insurance of any personal accounts you may have with SECU.

You can open your NC 529 Account online at www.CFNC.org/NC529 or visit your local branch and a Financial Services Officer will be happy to help you open one. The process is quick and easy. Each Account has one Participant (account owner) and one Beneficiary (the person for whom you are saving). As the Participant, you are in control of the NC 529 Account. The Beneficiary has no access to the Account or control of the funds. When you visit the branch, please bring demographic information (name, address, social security number, date of birth) for both the Participant and Beneficiary. Before you enroll, please review a complete Program Description at www.CFNC.org/NC529 or request one by calling the savings program toll-free at 800-600-3453.

Save for college while also saving on your taxes with an NC 529 Account!

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*Quoted rates, dividends, annual percentage yields (APY) and rates (APR) are subject to change daily at the discretion of the Board of Directors.