{"id":2978,"date":"2025-05-16T14:47:15","date_gmt":"2025-05-16T18:47:15","guid":{"rendered":"https:\/\/web.uri.edu\/hr\/?page_id=2978"},"modified":"2025-05-16T14:47:15","modified_gmt":"2025-05-16T18:47:15","slug":"collegebound-529-plan","status":"publish","type":"page","link":"https:\/\/web.uri.edu\/hr\/benefits\/collegebound-529-plan\/","title":{"rendered":"Collegebound 529 Plan"},"content":{"rendered":"\n

Collegeboundfund 529 <\/strong><\/a>plan is not a pre-taxed benefit hence you may enroll at any time.<\/strong><\/p>\n\n\n\n

College savings plans provide tax-advantages that assist employees in saving for future college education costs through payroll deduction contributions.  To obtain information regarding the college savings plan available for state employees, CollegeBoundFund, call 877-517-4829 or visit their website at CollegeBound Saver<\/a><\/p>\n\n\n\n

The Collegeboundfund<\/em><\/strong> <\/a>is a 529 plan<\/strong> (higher education savings program providing tax-exempt benefits), and is managed by Alliance Capital, and monitored by Rhode Island Office of Higher Education, and the General Treasurer\u2019s Office.<\/p>\n\n\n\n

With college costs skyrocketing, families need to save early for their children\u2019s higher education. Collegeboundfund<\/em><\/strong><\/a> offers families a powerful, yet simple way to save and invest for a child\u2019s college education.  A way to help your child avoid massive college loans upon graduation.<\/p>\n\n\n\n

The Participant (employee) remains in control of this account.  This program not only lets employees save for their own children\u2019s college education, but also for themselves, grandchildren, etc.  Even non-related individuals.<\/p>\n\n\n\n

Please visit the Collegeboundfund<\/em><\/strong> <\/a>web site or call them at 1-888-324-5057 for more information.<\/p>\n\n\n\n

Use your collegeboundfund savings for:<\/h3>\n\n\n\n
    \n
  • Tuition<\/li>\n\n\n\n
  • Fees<\/li>\n\n\n\n
  • Room and Board<\/li>\n\n\n\n
  • Books<\/li>\n\n\n\n
  • Any\u00a0required<\/strong>\u00a0school expense, such as a computer<\/li>\n<\/ul>\n\n\n\n

    Benefits:<\/h3>\n\n\n\n
      \n
    • Tax-free earnings growth<\/li>\n\n\n\n
    • Tax-free withdrawals (exempt from Federal and RI taxes on earnings)<\/li>\n\n\n\n
    • No income limits<\/li>\n\n\n\n
    • No age limit of the beneficiary<\/li>\n\n\n\n
    • Lowe minimum investment<\/li>\n\n\n\n
    • High contribution limit ($301,500 maximum contribution per account)<\/li>\n\n\n\n
    • Ability to change beneficiary<\/li>\n\n\n\n
    • Acceptance to all accredited colleges, universities, vocation, and trade schools across the country<\/li>\n\n\n\n
    • 15 options for investing<\/li>\n<\/ul>\n\n\n\n

      Who can you select as a beneficiary?<\/h3>\n\n\n\n
        \n
      • Anyone. Your child, grandchild, cousin, yourself, even someone not related to you.<\/li>\n<\/ul>\n\n\n\n

        What happens if my beneficiary does not want to use this savings for education?<\/h3>\n\n\n\n
          \n
        • You can leave the money in the account for use in the future \u2013 either by your beneficiary if he or she eventually decides to pursue a higher degree.<\/li>\n\n\n\n
        • You can change your beneficiary to someone who is a family member of the former beneficiary, such as the former beneficiary\u2019s child.<\/li>\n\n\n\n
        • You can make a non-qualified withdrawal, subject to regular income taxes plus a federally mandated 10% penalty or additional tax on the earnings. (Withdrawals may be subject to a deferred sales charge.)<\/li>\n<\/ul>\n\n\n\n

          What if my beneficiary receives a scholarship?<\/h3>\n\n\n\n

          There are a number of options:<\/p>\n\n\n\n

            \n
          • You can use Collegeboundfund to pay for education expenses that aren\u2019t covered by the scholarship<\/li>\n\n\n\n
          • You can leave the funds in the account for use at a future date (such as for an advanced degree)<\/li>\n\n\n\n
          • You can change the beneficiary to a family member of the original beneficiary.<\/li>\n<\/ul>\n\n\n\n

            You may also withdraw from your account the amount of the scholarship without penalty. Withdrawals in this circumstance will be taxable to the participant at the participant\u2019s tax rate.<\/p>\n\n\n\n

            If you make a withdrawal above the scholarship amount and don\u2019t use it for qualified higher education expenses* it will be subject to tax at your tax rate, plus an additional 10% IRS penalty or additional tax on the earnings.<\/p>\n\n\n\n

            *Qualified education expenses include tuition, fees, room and board, books and other supplies required for the attendance of a student at an institution of higher education. A 10% penalty or additional tax on the earnings withdrawn for non-qualified expenses will apply. Call Collegeboundfund for more specific information.<\/p>\n\n\n\n

            Ways to Participate:<\/h3>\n\n\n\n
              \n
            • A $250 deposit will open an account<\/li>\n\n\n\n
            • An amount, as little as $1, can be automatically put into the fund twice a month through your bank account.<\/li>\n\n\n\n
            • An amount, as little as $1, can be payroll deducted each pay period<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

              Collegeboundfund 529 plan is not a pre-taxed benefit hence you may enroll at any time. College savings plans provide tax-advantages that assist employees in saving for future college education costs through payroll deduction contributions.  To obtain information regarding the college savings plan available for state employees, CollegeBoundFund, call 877-517-4829 or visit their website at CollegeBound Saver The Collegeboundfund is a 529 plan (higher […]<\/p>\n","protected":false},"author":5286,"featured_media":0,"parent":71,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"footnotes":"","_links_to":"","_links_to_target":""},"class_list":["post-2978","page","type-page","status-publish","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/web.uri.edu\/hr\/wp-json\/wp\/v2\/pages\/2978","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/web.uri.edu\/hr\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/web.uri.edu\/hr\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/web.uri.edu\/hr\/wp-json\/wp\/v2\/users\/5286"}],"replies":[{"embeddable":true,"href":"https:\/\/web.uri.edu\/hr\/wp-json\/wp\/v2\/comments?post=2978"}],"version-history":[{"count":1,"href":"https:\/\/web.uri.edu\/hr\/wp-json\/wp\/v2\/pages\/2978\/revisions"}],"predecessor-version":[{"id":2979,"href":"https:\/\/web.uri.edu\/hr\/wp-json\/wp\/v2\/pages\/2978\/revisions\/2979"}],"up":[{"embeddable":true,"href":"https:\/\/web.uri.edu\/hr\/wp-json\/wp\/v2\/pages\/71"}],"wp:attachment":[{"href":"https:\/\/web.uri.edu\/hr\/wp-json\/wp\/v2\/media?parent=2978"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}