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Have a question? Get answers to frequently asked questions about NextGen 529 plans. Don’t see your question? Contact Customer Service.
About NextGen 529
What is NextGen 529?
What can I use the money I save in a Nextgen 529 account for? What’s a qualified expense?
What if my child doesn’t go to college?
Opening a NextGen 529 account
Who can open a NextGen 529 account? Does it have to be a parent?
Who is the account owner and who is the beneficiary?
Can my child access funds in the account?
Can funds be transferred into a NextGen 529 account from a Coverdell Education Savings Account (Coverdell ESA) or another state’s 529 plan?
Benefits for Maine Residents
Is there a Maine State Tax Deduction?
What are the Grants for Maine Residents?
What is the Maine Administration Fee Rebate Program?
What are the tax benefits of NextGen 529 and other 529 plans?
Managing Your NextGen 529 Account
How do I contribute to my NextGen 529 account?
Can I contribute to both a Coverdell Education Savings Account (Coverdell ESA or Education IRA) and a 529 plan such as NextGen 529 in the same year?
What are the minimum and maximum account contributions?
How is my money invested?
Using Your NextGen 529 Account
How do I make a withdrawal from my NextGen 529 account?
How do assets in a 529 account impact financial aid for college?
NextGen 529 and Other Saving Plans
Can I transfer funds from a Uniform Gift/Transfer to Minors Account (UGMA/UTMA) custodial account into a NextGen 529 account?
Can I roll over funds from a NextGen 529 account to an ABLE account?
1To be eligible for favorable tax treatment afforded to any earnings portion of withdrawals from Section 529 accounts, such withdrawals must be used for qualified higher education expenses, as defined in Section 529 of the Internal Revenue Code. Any earnings withdrawn that are not used for qualified higher education expenses are subject to federal income tax and may be subject to a 10% additional federal tax, as well as to state and local income taxes. State tax treatment of distributions for certain qualified education expenses may differ. Please consult your tax advisor for specific advice regarding such distributions.
2Some restrictions apply. You generally are permitted to change the beneficiary to another qualified member of the family, as defined under the Internal Revenue Code, without triggering income tax and 10% additional federal tax. Not applicable for accounts opened under a Uniform Gifts/Transfers to Minors Act registration.
3If you make the five-year election to prorate a lump-sum contribution that exceeds the annual federal gift tax exclusion amount and you die before the end of the five-year period, the amounts allocated to the years after your death will be included in your gross estate for tax purposes. Please consult your tax and/or legal advisor for specific guidance before making investment decisions that could affect your taxes or estate or Medicaid planning needs.
4This is based on interpretation of current federal financial aid rules. Financial aid rules may change, and the rules in effect at the time the beneficiary applies may be different. Distributions from Section 529 accounts owned by a party other than the parent or the student may be treated differently when calculating the Expected Family Contribution (EFC). For more complete information, please go to the Department of Education’s website at www.ed.gov.