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2023 New 529 College Savings Benefits

2023 New 529 College Savings Benefits

May 29, 2023

May 29th, is National College Savings Day!


What is a 529 Plan?

Named after Section 529 of the Internal Revenue Code, 529 plans are investment accounts used to pay for a beneficiary’s education expenses. 529 plans are sponsored by states (just about every state has one) and managed by mutual fund companies. You can save in any state’s plan no matter where you live and you can use your savings to pay for school expenses in any state (even internationally).

Take Advantage of the Free Grant Money!

Maine's 529 Plan is administered through FAME and Merrill Lynch and can be opened directly or through our office. If the account owner (adult) is a resident of the state of Maine you would be eligible for the below 2023 Next Gen 529 grants:

  • Open an account and receive the $500 Alfond Grant for Maine residents (babies born in Maine).

  • Any Maine account is eligible for a 30 percent match on contributions made to the account, up to a $300 match per year.

  • Make it easy by setting up automatic contributions from your payroll or bank account and get a $100 automated funding grant.

  • A $100 Initial Matching Grant (IMG) is available to Maine accounts opened and funded between January 1, 2023, and December 31, 2023, with the minimum required initial contribution for a beneficiary not previously named as the beneficiary of a NextGen account. 

New Benefits for 2023 and 2024!

A new Maine law goes into effect in 2023, reinstating and increasing the state income tax deduction for contributions to any 529 education savings plan, providing a deduction up to $1,000 per student for Maine state taxpayers. Learn more about the new tax deduction here.

Finally, the SECURE Act 2.0 brings a key change to unused 529 plans in 2024. Beneficiaries of 529 college savings accounts would be permitted to rollover up to $35,000 over the course of their lifetime from any 529 account in their name to their Roth IRA. These rollovers are also subject to Roth IRA annual contribution limits, and the 529 account must have been open for more than 15 years. 


´╗┐More up to date College Savings Information



Investors should consider the investment objectives, risks, charges and expenses associated with municipal fund securities before investing. This information is found in the issuer's official statement and should be read carefully before investing. Investors should also consider whether the investor’s or beneficiary’s home state offers any state tax or other benefits available only from that state’s 529 Plan. Any state-based benefit should be one of many appropriately weighted factors in making an investment decision. The investor should consult their financial or tax advisor before investment in any state's 529 Plan.