DISTRICT OF COLUMBIA

DC 529 College Savings Program

Type: Savings

Phone: 800-987-4859

State tax deduction for residents: Deduction for contributions up to $3,000 per beneficiary per year ($6,000 if married filing jointly)

Open to nonresidents: Yes

Refund provisions: Penalty of 10% of earnings

Minimum/maximum contributions: $100 ($15 with payroll deduction / $260,000

Other: Tax deductions are subject to recapture for non-qualified withdrawals or rollovers made within the first two years of establishing the account.

The DC College Savings Plan, managed by the Calvert Group, offers an age-based portfolio as well as six single fund options and a stability of principal fund with a minimum guaranteed 3% interest. This is one of the few 529 plans that offers a socially responsible portfolio. The standout is the Calvert New Vision Small Cap Fund, which has outperformed its peers over the last five years.

The is no enrollment fee for D.C. residents, who can enroll directly. But nonresidents must pay $25 and enroll through a financial adviser. Residents pay an annual maintenance fee or $15; non-residents pay $30. There also are program administrative expenses of 0.15% and underlying fund expenses range from 0% to 1.70%. The high fees start to outweigh the tax break for residents as your account balance grows.

State College Savings Plans