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DC 529 College Savings Plan |
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State Provider: Washington DC; Net Assets ($mil):
$117.2 as of
10-31-09 |
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Residents of the District of Columbia (and those able to invest using payroll deductions through their employers) may invest directly in the plan without paying a sales charge, but most others must go through a broker. A tax deduction of up to $4,000 for contributions ($8,000 for married couples or domestic partners filing jointly where each is an account owner) adds considerable appeal for residents. And socially-sensitive types may be especially intrigued: The offering is managed by Calvert, one of the socially responsible investing (SRI) industry's largest players. The plan's administrative expenses are reasonable here. The District of Columbia charges a 0.15% administrative fee and a $15 annual account fee ($30 for nonresidents plus a $25 enrollment charge). We also like the flexibility offered: Investors can mix and match an age-based track, six single-fund investment options, and a stable principle strategy, which guarantees a modest return. The big drawback, however, are the high costs for some of the plan's underlying funds. For example, both the small value option and the international equity fund, at 1.69% and 1.64% respectively, have expenses that are well-above average. Overall, we don't recommend this plan for non-residents, since steep costs at the underlying mutual funds detract from its appeal, but the tax incentives give residents a reason to take a look. (Information as of 03/02/2009) |
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| Availability: Sales Channel |
Resident: Both
Non-Resident: Both
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| Annual State Tax Deduction |
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Up to $4,000 (S),
8,000 (J)
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| Max Investment/Beneficiary |
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$260,000 |
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(includes appreciation)
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| Mos. to Qualified Withdrawal |
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Public, Private & International
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Age-Based Portfolios
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| Self-Directed Funds |
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| US Stock
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Bond |
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| Total International Funds: 5 |
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| Underlying Funds’ Ratings |
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| Overall Morningstar Rating |
# Equity
Funds |
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# Bond
Funds |
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| Ratings as of
10-31-09 |
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| Range |
0.00
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0.15 |
| 529 Plan Avg |
0.8 |
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| Portfolio Expense Ratio Range |
| Fee to Change Beneficiary |
| Share Classes: Sales Charge |
| A:
2.75 – 4.75% (front-load) |
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| Initial Purchase |
$100 |
$100 |
| Additional Purchase |
25 |
25 |
| Initial (AIP) |
25 |
25 |
| Additional (AIP) |
25 |
25 |
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