This just came into our News Room from our local reporters in Baltimore, Maryland, who are also affected by the recent loss in value of the Maryland 529 fund by as much as fifty percent. The parents are pushing for the maintenance to be taken over by the treasurer so they can make sure that it is still a viable option and not bankrupt.
Recently, this dilemma with the interest rate calculation ended in the resignation of Chairman Peter Tsirigotis. We spoke to local lawmakers and were assured that their goal was to fix this problem. The program has always done good, and it is not the goal of the State or the plan moderators to defund this program.
Now the ugly truth?
Maryland 529 is a state-sponsored college savings plan to help families save for future college expenses. The program is named after section 529 of the Internal Revenue Code, which allows for tax-advantaged savings for education expenses.
Maryland 529 offers several investment options that professional investment managers manage. The plan is open to Maryland residents and non-residents, and contributions can be made on behalf of any beneficiary, including a child, grandchild, or even yourself.
By contributing to a Maryland 529 plan, you can take advantage of tax benefits such as tax-free growth of your investments and tax-free withdrawals when you use the funds to pay for qualified education expenses, such as tuition, fees, room and board, books, and supplies.
The plan can affect you if you are a parent, grandparent, or anyone interested in helping a loved one pay for college. Contributing to a Maryland 529 plan can help reduce the financial burden of paying for college and ensure your loved one has the resources they need to pursue their education.
It’s important to note that while Maryland 529 is an excellent tool for saving for college, it’s not the only option available. You should research your options and consult a financial advisor to determine what’s best for your situation.
