Account Owner or Participant
The person who opens a College SAVE Plan account and controls the assets held in the account. Anyone age 18 or older who is a U.S. resident or a resident alien with a Social Security number or taxpayer identification number can open a College SAVE account. Corporations and certain other entities, including custodial and trust accounts, with a valid taxpayer identification number, also may participate.
The process of spreading an investment among various asset classes such as stocks, bonds, and cash.
A program designed to give every baby residing in North Dakota twelve months old or younger his or her first college savings: $200 for higher education. Children FIRST is sponsored by College SAVE and funded by plan administrator and state-owned Bank of North Dakota.
College SAVE or Plan
College SAVE is a 529 college savings plan designed to help individuals and families save for college in a tax-advantaged way. College SAVE is a 529 plan established by the State of North Dakota and administered by Bank of North Dakota.
The money that is deposited into to a College SAVE account.
The beneficiary is the person designated by the account owner on whose behalf higher-education expenses are expected to be paid, in whole or in part, using money from the College SAVE account. The beneficiary must be a natural person, and each account may only have one beneficiary. Anyone, including the account owner, can be a beneficiary.
The difference between the current value of an investment and the cost basis of that investment.
Eligible Educational Institution
Generally, eligible educational institutions include two-year and four-year public and private colleges and universities, graduate and professional programs, and even some vocational programs. The school must be eligible to participate in the federal financial aid programs. To check on the eligibility of a school, please click here.
529 College Savings Plan
A college savings program sponsored by a state (or eligible educational institutions) and established under Internal Revenue Code Section 529. In North Dakota, this is the College SAVE plan which is administered by Bank of North Dakota.
The College SAVE Matching Grant program provides matching grants of up to $300 per year to eligible students, based on certain income limitations. 1 The program has been designed to help parents and others add to their College SAVE account.
Maximum Contribution Limits
The Maximum Contribution Limit established for the College SAVE Plan currently in effect is $269,000 per designated beneficiary, from all sources (adjusted periodically).
Member of the Family
As defined under Section 529 of the Internal Revenue Code, a member of the family of a designated beneficiary is a person related to the designated beneficiary as follows: (i) son or daughter, or a descendent of either; (ii) stepson or stepdaughter; (iii) a brother, sister, stepbrother or stepsister, half brother or half sister; (iv) the father or mother, or an ancestor of either; (v) a stepfather or stepmother; (vi) a son or daughter of a brother or sister; (vii) a brother or sister of the father or mother; (viii) a son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law or sister-in-law; (ix) the spouse of the designated beneficiary or of any of the foregoing individuals; or (x) a first cousin. For purposes of this definition, a child includes a legally adopted child of an individual and shall be treated as the child of such individual by blood.
Minimum Initial Contribution
The initial and minimum contribution to a College SAVE Plan account is $25. A recurring contribution can be set up for a minimum of $25 per month/$75 per quarter from accounts held at a U.S. bank, savings and loan association, or credit union that is a member of the Automated Clearing House (ACH) network. Contributions made through automatic payroll direct deposit can be as low as $25 per pay period. Note: A periodic investment plan cannot assume a profit or protect against a loss in declining market.
Non-Qualified Withdrawals or Non-Qualified Distributions
Amounts withdrawn from a 529 account can be withdrawn for purposes other than the payment of the designated beneficiary's qualified higher education expenses at an eligible educational institution. These are called non-qualified withdrawals. 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.
Qualified Higher Education Expenses
As defined by the Internal Revenue Code, withdrawals from a 529 account are tax-free when they are used to pay for tuition, room and board (with certain limitations), required books, required supplies, required equipment, computers and peripheral equipment, computer software, Internet access and related services (if such computer equipment, software or services are used primarily by the designated beneficiary while enrolled at an Eligible Educational Institution),mandatory fees and special needs services at an Eligible Educational Institution. (See "non-qualified withdrawals" for the implications of a non-qualified withdrawal.)
Qualified Withdrawals or Qualified Distributions
Amounts withdrawn from a 529 account and used for Qualified Higher Education Expenses at Eligible Educational Institutions. All other withdrawals are non-qualified.
Recurring Contribution or Automatic Investment Plan
Transfers to a College SAVE account can be made at a minimum of $25 per month/$75 per quarter from accounts held at a U.S. bank, savings and loan association, or credit union that is a member of the Automated Clearing House (ACH) network.
Money that you take out of a College SAVE Plan account. Withdrawals are either qualified or non-qualified.
This website contains links to other websites as a convenience to users. Neither College SAVE, the state of North Dakota, Bank of North Dakota, Ascensus Broker Dealer Services, Inc., nor Vanguard endorses or takes any responsibility for any such websites or for any information contained therein.
1Matching grants are subject to the availability of funds and can be reduced or stopped at the discretion of Bank of North Dakota.
Ascensus Broker Dealer Services is the distributor of the North Dakota College SAVE plan, Learn more about Ascensus Broker Dealer Services, Inc. on FINRA's BrokerCheck.
For more information about North Dakota's College SAVE Plan (College SAVE), call 1-866-SAVE-529 (1-866-728-3529) or click here to obtain a Plan Disclosure Statement. Investment objectives, risks, charges, expenses, and other important information are included in the Plan Disclosure Statement; read and consider it carefully before investing. Ascensus Broker Dealer Services, Inc. (ABD) is Distributor of the College Save.
Before investing in any 529 plan, you should consider whether your or the designated beneficiary's home state offers a 529 plan that provides its taxpayers with state tax and other benefits that are only available through the home state's 529 plan. You also should consult your financial, tax, or other advisor to learn more about how state-based benefits (or any limitations) would apply to your specific circumstances. You also may wish to contact directly your home state's 529 plan(s), or any other 529 college savings plan, to learn more about those plans' features, benefits and limitations. Keep in mind that state-based benefits should be one of many appropriately weighted factors to be considered when making an investment decision.
College SAVE is a 529 plan established by the State of North Dakota. Bank of North Dakota (Bank) acts as trustee of College SAVE Trust, a North Dakota Trust, and is responsible for administering College SAVE Trust and College SAVE. ABD, the Plan Manager, and its affiliates, have overall responsibility for the day-to-day operations of the Plan, including recordkeeping and marketing. The Vanguard Group, Inc. (Vanguard) provides underlying investments for the Plan. The College SAVE's Portfolios, although they invest in mutual funds, are not mutual funds. Units of the Portfolios are municipal securities and the value of units will vary with market conditions.
Investment returns are not guaranteed and you could lose money by investing in College SAVE. Participants assume all investment risks, including the potential for loss of principal, as well as responsibility for any federal and state consequences.
Not FDIC Insured. No Bank, State or Federal Guarantee. May Lose Value.
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