While the Rhode Island CollegeBoundfund (Advisor-sold) 529 savings program is available to Rhode Island residents on a direct basis, on a national basis it is sold through brokers (unit classes A, B, and C) and fee-based planners (unit class R). Rhode Island residents purchasing through advisors can use lower-cost classes RA and RZ. The program features a menu of age-based and static portfolio options utilizing AB mutual funds along with a stable value option.
- Summary: While the Rhode Island CollegeBoundfund (Advisor-sold) 529 savings program is available to Rhode Island residents on a direct basis, on a national basis it is sold through brokers (unit classes A, B, and C) and fee-based planners (unit class R). Rhode Island residents purchasing through advisors can use lower-cost classes RA and RZ. The program features a menu of age-based and static portfolio options utilizing AB mutual funds along with a stable value option.
- Program type: Savings
- Program manager: AB L.P.
- State residency requirements: None
- Maximum contributions: Accepts contributions until all account balances in Rhode Island's 529 plan for the same beneficiary reach $395,000.
- Minimum contributions: With lump-sum contributions, the minimum initial contribution is $1,000 ($25 for classes R, RA, and RZ), and the minimum subsequent contribution is $50 ($25 for classes R, RA, and RZ). With the automatic investment plan, the minimum contribution level is $50 per month (no minimum for classes R, RA, and RZ).
- Age-based investment options: The Age-Based Portfolios option offers a choice between 3 risk levels: Aggressive, Moderate and Conservative. An additional age-based option, the CBf Morningstar Index option seeks a balance of return potential and risk through investment in passively managed funds. Each contains 7 age bands comprised of 8-13 underlying mutual funds. Contributions are placed into the portfolio corresponding to the selected risk level and the age of the beneficiary. The portfolios shift to a more conservative investment allocation over time.
- Static investment options: Select among 3 multi-fund portfolios (Appreciation, Balanced, and Conservative), a stable value portfolio (Principal-Protection Income Portfolio), and 8 individual-fund portfolios. A dollar-cost averaging option provides for automatic monthly reallocations between any of the portfolios.
- Underlying investments: AB mutual funds.
- Enrollment or application fee: None, but contributions may be subject to a sales charge depending on share class.
- Account maintenance fee: $25 annually for accounts with less than $25,000, waived for Rhode Island residents, for accounts in the automatic contribution plan, and for unit class R.
- Program management fees: Management and administrative fees are included with the expenses of underlying investments (not disclosed separately by program manager). Distribution/servicing fees are 0.25% (Classes A, RA), 1.00% (Classes B and C), or 0% (Classes RZ and R).
- Expenses of the underlying investments: Ranges from 0.20% to 0.94% in the age-based and static multi-fund portfolios (portfolio weighted average), and from 0.50% to 1.03% in the individual-fund portfolios, inclusive of program manager fees.
- Total asset-based expense ratio: Class A: 0.70% - 1.28%
Class B: 1.55% - 2.03%
Class C: 1.45% - 2.03%
Class R (Fee-based): 0.45% - 1.03%
Class RA (RI-resident): 0.41% - 1.46%
Class RZ (RI-resident): 0.16% - 1.21%
- Program match on contributions: None
- State tax deduction or credit for contributions: Contributions to the Rhode Island 529 plan of up to $500 per year by an individual, and up to $1,000 per year by married taxpayers filing jointly are deductible in computing Rhode Island taxable income, with an unlimited carry forward of excess contributions. Rollovers from another 529 plan are not deductible. Contribution deadline is December 31.
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- Telephone: 1-888-324-5057