North Carolina's National College Savings program features Vanguard funds in its age-based and static options, along with a fixed-income option managed by the state treasurer and a federally-insured deposit option through the State Employees Credit Union.
- Summary: North Carolina's National College Savings program features Vanguard funds in its age-based and static options, along with a fixed-income option managed by the state treasurer and a federally-insured deposit option through the State Employees Credit Union.
- Program type: Savings
- Telephone: 1-800-600-3453
- Web site: Click here to visit
- Program manager: College Foundation, Inc.
- State residency requirements: None
- Maximum contributions: As of November 2013, accepts contributions until all account balances in the NC 529 plan for the same beneficiary reach $410,000.
- Minimum contributions: The minimum initial contribution is $25 and the minimum subsequent contribution is $25.
- Age-based investment options: The Vanguard Age-Based Option offers a choice among 3 different risk levels (Aggressive, Moderate, or Conservative). Contributions are placed into the portfolio corresponding to the selected risk level and number of years to expected enrollment, and later reassigned to more conservative portfolios until the beneficiary reaches age 19.
- Static investment options: Select among a fixed-income portfolio (The Dependable Income Fund), five multi-fund portfolios,four individual-fund portfolios, and a federally-insured deposit account through State Employees' Credit Union. An equity-indexed investment, the Protected Stock Fund, was closed to new investments on February 27, 2008. Also, a 100% equity portfolio, the Active Core Equity Fund, was closed January 31, 2011.
- Underlying investments: The Vanguard Age-Based option offers a choice between Aggressive, Moderate or Conservative Tracks all of which invest in Vanguard mutual funds. The multi-fund and individual options invest in Vanguard mutual funds also. The Dependable Income Fund uses the state treasurer's short-term investment portfolio.
- Enrollment or application fee: None.
- Account maintenance fee: A $1.50/month ($18.00/year) fee is assessed per Account for paper delivery of statements and confirmations. This fee is waived if the Participant elects to receive electronic delivery.
- Program management fees: 0.25%
- Expenses of the underlying investments: NC Treasurer Dependable Income Fund: Less than 0.05%
Vanguard Age-Based Options: Ranges from 0.11% to 0.16%
Vanguard Individual and Multi-fund Options: 0.09% to 0.17%
Federally-Insured Deposit Account: None
- Total asset-based expense ratio: 0.25% - 0.42%
- Program match on contributions: None.
- State tax deduction or credit for contributions: Contributions to the North Carolina 529 plan, including rollover contributions, of up to $2,500 by an individual, and up to $5,000 by a married couple filing jointly, are deductible in computing North Carolina taxable income in 2013. The deduction has been eliminated for 2014 and future years.