Maryland 529 Plans
Maryland offers two 529 college savings plans, a direct-sold plan called Maryland College Investment Plan, and a
pre-paid tuition plan called Maryland Prepaid College Trust.
Maryland College Investment Plan
Maryland College Investment Plan is a traditional 529 plan that allows you to invest money today and reap tax
benefits when you withdraw it to pay for qualified education expenses. It was named one of hte top five 529
college savings plans by Morningstar.
Type: Direct – this Maryland 529 plan can be purchased directly from the state.
Fund Family: T. Rowe Price
Minimums: To get started you can deposit $250 or just $25 if you choose to use the
automatic monthly plan. The minimum subsequent contribution is $25.
Maximum Contributions: Currently, you can invest until your account balance reaches
$320,000 in your Maryland 529 plan. Of course, your total amount in the plan can be higher as your
investments group. 529 plans typically increase the contribution limit over time, so you may be able to
Tax Benefits: Good news for Maryland residents - by investing in your state's 529 plan,
you can deduct up to $2,500 on your state income taxes per beneficiary. You also get federal income
tax benefits as you do not pay income tax on your earnings. Out-of-state participants still get the federal
Residency: The Maryland College Investment Plan is open to all United States residents,
not just those in Maryland
You can learn more about this Maryland 529 plan at the official website http://www.collegesavingsmd.org/college-investment-plan-overview.aspx.
Maryland Prepaid College Trust
Maryland also offers a pre-paid tuition plan that lets you lock in today's rates for college. It can
be used at any qualified institution of higher education, public or private, anywhere in the country.
However, private and out-of-state college expenses will be prorated and may not be fully covered. It is open
to Maryland and Washington D.C. residents.
For more information about Maryland Prepaid College Trust visit the official website http://www.collegesavingsmd.org/prepaid-college-trust-overview.aspx.