Although Delaware is one of the smallest states in the nation, it offers a variety of educational investment plans with Internal Revenue Code Section 529 tax exemption. The state's 529 college savings plans have been providing opportunities for students to fund future education since 1998 with age-based and static investment plans.
The Delaware 529 savings plan is one that mimics the successful set-up of programs in Arizona, New Hampshire and other states. While the main offerings in the plan are managed by a specific investment brokerage firm, this college savings plan draws from a number of other investment firms for those interested in more diversity.
The Delaware College Investment Plan is available to residents and non-residents, and there are no enrollment, application or maintenance fees. However, the portfolios are subject to program management fees charged by the fund management firm. Overall, the total asset-based expense ratio falls between .25 percent and 1.42 percent.
The entire enrollment process can be completed online, and account information can be accessed online at any time after enrollment. The plan imposes a minimal initial contribution of $50 for lump-sum contributions, while the automatic investment plan requires only $15 per month, or quarterly contributions of $45.
Delaware's 529 plan offers three age-based investment options, two of which are based on Fidelity funds. The third draws from a number of different financial firms. All three of the Delaware age-based 529 plans gradually shift to a lower risk allocation as the programs mature.
The static investment options provide a wider range of options, with a bank deposit portfolio, five individual-fund portfolios and six multi-fund portfolios. The bank deposit portfolio provides steady, predictable growth with a Federal Deposit Insurance Corporation (FDIC)-insured savings account, but the rate of interest may not keep pace with the mutual fund options.
While the individual-fund portfolios are managed by one company, the multi-fund portfolios include investments from other firms. All of the Delaware 529 savings portfolios are subject to tax exemption and the distributions from the account can be made payable to a school, beneficiary or the account owner.
The Delaware 529 savings programs are similar to other programs across the nation, although the state does provide one unique incentive, which offers rebates of 2 percent on product purchases for certain credit cards.
Although the Delaware 529 savings plan has been available for longer than the programs in many other states, the government has kept it up to date. The program was last updated in October of 2011, when a multi-manager option was added.
The Delaware 529 savings plan is one that mimics the successful set-up of programs in Arizona, New Hampshire and other states. While the main offerings in the plan are managed by a specific investment brokerage firm, this college savings plan draws from a number of other investment firms for those interested in more diversity.
The Delaware College Investment Plan is available to residents and non-residents, and there are no enrollment, application or maintenance fees. However, the portfolios are subject to program management fees charged by the fund management firm. Overall, the total asset-based expense ratio falls between .25 percent and 1.42 percent.
The entire enrollment process can be completed online, and account information can be accessed online at any time after enrollment. The plan imposes a minimal initial contribution of $50 for lump-sum contributions, while the automatic investment plan requires only $15 per month, or quarterly contributions of $45.
Delaware's 529 plan offers three age-based investment options, two of which are based on Fidelity funds. The third draws from a number of different financial firms. All three of the Delaware age-based 529 plans gradually shift to a lower risk allocation as the programs mature.
The static investment options provide a wider range of options, with a bank deposit portfolio, five individual-fund portfolios and six multi-fund portfolios. The bank deposit portfolio provides steady, predictable growth with a Federal Deposit Insurance Corporation (FDIC)-insured savings account, but the rate of interest may not keep pace with the mutual fund options.
While the individual-fund portfolios are managed by one company, the multi-fund portfolios include investments from other firms. All of the Delaware 529 savings portfolios are subject to tax exemption and the distributions from the account can be made payable to a school, beneficiary or the account owner.
The Delaware 529 savings programs are similar to other programs across the nation, although the state does provide one unique incentive, which offers rebates of 2 percent on product purchases for certain credit cards.
Although the Delaware 529 savings plan has been available for longer than the programs in many other states, the government has kept it up to date. The program was last updated in October of 2011, when a multi-manager option was added.
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