SOURCE: Calvert Investments

Calvert Investments

December 01, 2015 06:00 ET

The DC College Savings Plan Reminds Families That the Deadline to Receive 2015 Tax Benefits Is Quickly Approaching

Contributions Made Before December 31 Qualify for up to $4,000 in Tax Benefits

WASHINGTON, DC--(Marketwired - Dec 1, 2015) - With the year-end around the corner, families are urged to enroll in or contribute to the top-performing DC College Savings Plan in order to qualify for district tax deductions or incentives on their 2015 returns. The offering is the only 529 plan in the country to offer a full range of socially responsible investments that includes socially responsible age-based portfolios, among others.

Residents of the District of Columbia who invest in the plan can deduct up to $4,000 in contributions from their federal adjusted gross income each year on their D.C. tax return. The amount can go up to $8,000 for married couples filing jointly if both have DC College Savings Plan accounts. Investors are also entitled to carry forward any amount greater than $4,000 contributed to one or more accounts in any tax year and the deduction can be carried forward for up to five years.

"The DC College Savings Plan offers several tax benefits and is a great higher education investment option that is flexible and has a favorable financial aid impact," says Jeffrey Barnette, D.C. Deputy Chief Financial Officer and Treasurer. "It is open to everyone in the country and money invested in the plan can be used to cover costs at any accredited higher education institution or vocational school."

As higher education costs continue to rise, investing in a college savings plan helps families prepare. A 529 investment is also a thoughtful holiday gift for grandparents and other relatives who can open an account for a prospective student.

The importance of a college degree is also increasing. By 2020, 65 percent of jobs will require more than a high school diploma*. That number has more than doubled since 1973.

The DC College Savings Plan is ranked first in the nation by www.savingforcollege.com among top-performing plans and has earned a 4-cap rating for its investment attributes and benefits offered to participants**.

When saving is started early, the income growth potential over time helps people achieve their higher education funding goals. Research shows that investing even as little as $25 a month could amount to nearly $10,000 in about 18 years. Savings can grow even more as multiple family members can contribute to one account. Opening a DC College Savings Plan account is easy and requires only an initial contribution as follows:

  • $15 when a payroll deduction plan is set up with an employer,
  • $25 when an automatic contribution plan is set up through a bank, or
  • $100 when using a check to pay.

For more information on the DC College Savings Plan, please visit www.dccollegesavings.com, call 800.987.4859 (800.368.2745 for non-District residents) or contact your financial advisor. An investor should consider the investment objectives, risks, charges, and expenses of an investment carefully before investing. The District of Columbia College Savings Trust Program Disclosure Booklet contains this and other information. Read it carefully before you invest or send money.

An investor should also consider, before investing, whether the investor's or designated state offers any state tax or other benefits that are only available to residents of that state. An investment in another state 529 college savings plan may not offer comparable benefits.

The Government of the District of Columbia does not guarantee investments in the program. Investment involves risk, including possible loss of principal invested. The DC College Savings Plan is underwritten and distributed by Calvert Investment Distributors Inc., member FINRA/SIPC, and subsidiary of Calvert Investments, Inc.

About DC College Savings Plan
The DC College Savings Plan is a Section 529 plan created to help families prepare for the substantial cost of higher education. Sponsored by the Government of the District of Columbia and managed by Calvert Investments, the Plan offers special tax advantages that enable participants to maximize their savings potential. It is the only 529 plan in the country to offer a full range of socially responsible (sustainable) investments.

*Georgetown University, RECOVERY: JOB GROWTH AND EDUCATION REQUIREMENTS THROUGH 2020, June 2013 [http://cew.georgetown.edu/recovery2020].

** Ranked #1 for the one, three and five-year periods (among 55, 51 and 43 direct-sold plans, respectively) and #6 (among 30 plans) for the ten-year period ended September 30, 2015. Ranking based on composite performance. Past performance is no guarantee of future results.

Each state-sponsored program is assigned a program rating ranging from one cap (least attractive) to five caps (most attractive). The 5-cap rating represents an opinion of the overall usefulness of a state's 529 plan, based on many considerations.

The 5-cap rating is not strictly a measure of historical returns and is not a predictor of future investment performance, level of investment risk, or financial solvency of the program funds. The rankings were determined by www.savingforcollege.com, a private company that tracks 529 plans.

Contact Information