Online gift contributions to CollegeBoundfund top $1M mark

PROVIDENCE – Online gift contributions to CollegeBoundfund, Rhode Island’s tax-advantaged 529 college savings plan, have topped the $1 million mark.

The plan is designed to encourage families to save for future higher education expenses at accredited colleges, universities and vocational or trade schools nationwide.
The plan’s online gifting tool offers a way for account owners to invite family members and friends to contribute to established accounts, according to information provided by the program.
“Families and friends are embracing the tradition of giving a gift that provides endless possibilities for a child’s future,” Gov.-elect Gina M. Raimondo, who has CollegeBoundfund accounts for her two young children, said in a statement. “This also demonstrates that more families understand the importance of setting goals and personal planning, which are critical skills in creating a more financially empowered Rhode Island.”
More than 25,000 CollegeBoundfund accounts are established for Rhode Island beneficiaries with total assets under management of more than $355 million for Rhode Island residents, as of Dec. 5.
“Contributing to a CollegeBoundfund account sends an empowering message that you believe in the child’s future and are invested in their educational success,” Gail Mance-Rios, acting executive director of The Rhode Island Higher Education Assistance Authority, said in a statement. “As we’ve seen with the results of the online gifting tool, it’s easier than ever for family and friends to deepen their commitment and contribute to a child’s college savings goals.”
Through CollegeBoundfund, Rhode Islanders receive benefits, including:

  • A state tax deduction of $500 (individual) or $1,000 (joint filer) for CollegeBoundfund contributions made by account owners by Dec. 31.
  • Low minimum initial and subsequent contributions – accounts can be started with as little as $25.
  • Low investment fees and no annual account fee.
  • Automatic deductions from direct deposit paychecks or automatic contributions from checking or savings accounts.

While the online gifting tool is available to all families investing in the program, those with newborns have an additional resource to consider. Children born to or adopted by Rhode Island families are eligible for a $100 CollegeBoundbaby Grant to be used for higher education.
Starting on Jan. 1, parents of newborns simply check the box “yes” on their in-hospital birth certificate worksheets to allow the state Office of Vital Records to release necessary contact information to RIHEAA to authorize the CollegeBoundbaby Grant for their child. If a child is adopted by a Rhode Island resident, the adoptive parent may self-enroll their child within the first year of adoption.
The $100 contribution will be held and invested by RIHEAA in a CollegeBoundfund master account on behalf of the child until the child is ready to attend a higher education institution at any accredited college, university, and vocational or trade school nationwide. The grant and any associated earnings can be withdrawn for the purpose of funding qualified higher education costs.

Visit www.alliancebernstein.com/ri/home.aspx for information.

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