$500 Alfond Grant
The $500 Alfond Grant is awarded to Maine resident babies for future higher education expenses.1
Families can use their $500 Alfond Grant to open a NextGen 529 account, without making an initial contribution. That means they can open a NextGen 529 account anytime and add money when they’re ready. There are a lot of benefits to saving for college with a NextGen 529 account, including tax advantages, many investment options, and no minimum contribution.
After opening a NextGen 529 account, families can take advantage of Grants for Maine Residents, including yearly matching grants for making contributions. These grants can help build savings.2
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Alfond Grant + $100 Initial Matching Grant
Did your baby receive a $500 Alfond Grant? If you open a NextGen 529 account and add $25 before your baby’s first birthday, you’ll get a $100 Initial Matching Grant.2
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FAQs
Get answers to frequently asked questions about the Alfond Grant. Don’t see your question? Contact NextGen 529.
What is the $500 Alfond Grant?
The $500 Alfond Grant is awarded to all babies born Maine residents.1 The Alfond Grant can be used to pay for higher education expenses at eligible higher education institutions and must be used by the child’s 28th birthday.
The $500 Alfond Grant program is a legacy gift from late philanthropist Harold Alfond to benefit future generations of Maine children. Mr. Alfond hoped the $500 Alfond Grant would inspire families to also save for their children’s higher education.
Visit MyAlfondGrant.org to learn more.
How is the Alfond Grant awarded?
The $500 Alfond Grant is automatically awarded to all babies born Maine residents (since January 1, 2013). See Alfond Grant Guidelines for more information about eligibility.
Babies not born as Maine residents, but who become Maine residents before the age of 1, can receive the Alfond Grant if a NextGen 529 account is opened for the baby’s benefit before his or her first birthday. For such a babies, the Alfond Grant will be linked to the NextGen 529 accounts established for the babies.
If your Maine resident baby was born out of state, please call FAME at 800-228-3734.
For children born at Maine General Hospital in 2008 and for children born between 1/1/09 and 12/31/12, whether or not born a Maine resident, the Alfond Grant was awarded if a NextGen 529 account was opened by the child’s first birthday, naming the child as the beneficiary of the account and the child was a Maine resident at the time of account opening.
What is the difference between the Alfond Grant and a NextGen 529 account?
The Alfond Grant is a $500 legacy gift from Harold Alfond for Maine children which is invested and has the opportunity to grow while the child it will benefit grows.
A NextGen 529 account is an investment account families can use to invest for future higher education. Any growth in a 529 account is tax-free when used for qualified higher education expenses.3 NextGen 529 offers families a lot of benefits to help them build dedicated higher education savings. Money saved in a NextGen 529 account can be used for many kinds of education—such as two-and four-year degree programs, trade schools, and even qualified online courses—at home or abroad.
While the Alfond Grant will be there for a child—even if their family doesn’t save any more money, lots of Maine families open a NextGen 529 account to invest their own money for their child’s future education.
How can families save?
Contributions by parents, family or friends cannot be made directly to the Alfond Grant. But the Alfond Grant can be used to open a NextGen 529 account without making an initial contribution. Once the child has a NextGen 529 account, parents, family and friends can make contributions to the account4 and take advantage of other matching Grants for Maine Residents.2
What can an Alfond Grant be used for?
The Alfond Grant can be used to pay for qualified higher education expenses at eligible higher education institutions. This includes a long list of expenses associated with higher education such as tuition, fees, books, supplies required by your school (including computers!) and required equipment.
You can use the Alfond Grant at any schools that participate in federal student aid programs. There are many types of schools that qualify – two-year colleges such as community colleges–public and private, four-year colleges and universities–public and private, career schools (also known as trade or vocational schools), eligible online schools, and some certificate programs.
The Alfond Grant must be used by the child’s 28th birthday or it is forfeited.
When it is time to use my Alfond Grant, how do I withdraw the funds?
You can make a withdrawal using multiple methods: online, by phone, or by mailing a form. If you have made contributions to your NextGen 529 account, the Alfond grant should be fully used before other funds. Withdrawals of Alfond Grant funds can only be paid directly to an eligible institution of higher education for current post-secondary expenses.
Learn more about making withdrawals from your Connect Account
Learn more about making withdrawals from your Direct Account
Your financial advisor can help you with a withdrawal from your Select Account.
How do I link my child’s Alfond Grant to their NextGen 529 account?
You don’t need to do anything! If your child has the Alfond Grant, FAME will automatically link it to your NextGen 529 account. It can take a bit of time. FAME will notify you once the account has been linked and you can see the grant’s value when you view your account online and on quarterly statements.
Where can I find more information about Harold Alfond and the Alfond Scholarship Foundation?
Visit MyAlfondGrant.org to learn more.
Which 529 Account Is Right for You?
NextGen 529 offers three types of accounts
Simplified Savings
The Connect Account
Connect Account Features:
- Streamlined investment choices
- Easy to view account platform
- Emergency savings option by Vestwell, managed on the same online platform
SELF-DIRECTED
The Direct Account
Direct Account Features:
- Multiple investment options
- Hands-on account control
- Self-directed savings choices
ADVISOR-MANAGED
The Select Account
Select Account Features:
- Multi-manager investment options
- Advisor and investor account platforms
- Advisor-managed savings choices
Get Started – Connect or Direct
It’s never too early to start planning. Opening a NextGen 529 account now and saving can make a big difference to your child later. Choose the Account type that’s right for you to get started.
1The Alfond Grant is not automatic in all circumstances and is also available in limited other circumstances. The use of the Alfond Grant is also subject to certain restrictions – see Alfond Grant Guidelines.
2Grants for Maine Residents are linked to eligible Maine accounts. An Alfond Grant recipient is eligible to receive the $100 Initial Matching Grant if the minimum required initial contribution is made before the beneficiary’s first birthday. Upon withdrawal, grants are paid only to institutions of higher education. See Terms and Conditions of Maine Grant Programs for other conditions and restrictions that apply. Grants may lose value.
3To 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 the Internal Revenue Code. Any earnings withdrawn that are not used for such expenses are subject to federal income tax and may be subject to a 10% additional federal tax as well as state and local income taxes. Upon withdrawal, the Alfond Grant will be paid only to institutions of higher education.
4Persons other than the account owner who make contributions will have no subsequent control over the funds contributed to a NextGen account. Only the NextGen account owner will receive confirmation of account transactions and may direct transfers, rollovers, investment changes, withdrawals and change the account beneficiary (as permitted under federal law). Third party contributors may subject NextGen account owners to tax consequences. NextGen account owners and third party contributors should consult their tax advisors to discuss income or gift tax consequences.
