Unique Benefits for North Dakota Residents
College SAVE is your plan, developed by the State of North Dakota and administered by Bank of North Dakota (the only state-owned bank in the country). So, it makes sense that College SAVE offers unique benefits only available for North Dakota residents. These are in addition to the entire list of benefits that College SAVE delivers to all participants.
Special state tax benefit
Together with College SAVE's overall tax advantages (tax-deferred earnings, and tax-free qualified withdrawals),1 there is a special benefit only available to participants in College SAVE - a state income tax deduction. North Dakota taxpayers can deduct up to $10,000 if married, filing jointly ($5,000 if single) from their state taxable income for contributions into the College SAVE Plan each year.2
The annual account maintenance fee of $20 is waived if the participant or designated beneficiary is a North Dakota resident.
Children FIRST, sponsored by College SAVE and funded by plan administrator and state-owned Bank of North Dakota, is a program that offers $100 to every baby residing in North Dakota twelve months old or younger for their higher education. To apply, or for more information (including program terms and conditions, and frequently asked questions) visit ndchildrenfirst.com.
College SAVE Matching Grant Program
NOTE: As of May 1, 2014, the Matching Grant program will provide matching grants of up to $300 per year to eligible students. This replaces the current amount of up to $500. Please submit a Matching Grant Application postmarked prior to May 1, 2014 to be considered for the up to $500 match.
Bank of North Dakota is pleased to offer matching grants to eligible College SAVE participants. The College SAVE Matching Grant program has been designed to help parents and others add to their College SAVE account and to help North Dakota residents get a head-start on saving for their future education. The program provides matching grants of up to $500 per year to eligible students, based on certain income limitations.3
Matching Grant eligibility
Here's how the College SAVE Matching Grant Program works:
- You must have a College SAVE account. If you haven't signed up yet, submit an enrollment form, available here. You can also enroll online or call us at 1.866.SAVE.529 for more information.
- Contributions considered toward the matching grant must have been made within 12 months of opening a College SAVE account. If you have, Bank of North Dakota will match your contributions, up to $500.
- Your beneficiary -the person you are saving for- must be 15 years old or younger.
- Submit a matching grant application - available here. This application must be received within the first 13 months after opening an account.
- If your application meets all requirements, you will be notified and a matching grant account will be established where the funds will be deposited.
1 Earnings on non-qualified withdrawals are subject to federal income tax and may be subject to a 10% federal penalty tax, as well as state and local income taxes. The availability of tax or other benefits may be contingent on meeting other requirements.
2 Rollovers from another state's 529 plan are not eligible for the state income tax deduction.
3 Matching grants are subject to the availability of funds and can be reduced or stopped at the discretion of Bank of North Dakota.