DC College Savings Plan -  Information for Financial Professionals

DC College Savings Plan is the only 529 plan in the country that offers your clients the choice of single fund investments and age-based portfolios that include a full range of sustainable and responsible investment options. Sponsored by the Government of the District of Columbia and managed by Calvert Investments, the Plan offers special tax advantages that enable your clients to maximize their savings potential.
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Control Over Assets

Unlike traditional custodial accounts (UGMA or UTMA), the DC College Savings Plan allows your clients to control account assets—including withdrawals—even when the beneficiary reaches majority age. If the beneficiary chooses not to go to college, your client can designate a new beneficiary (a family member) without federal income tax consequences.

Anyone Can Contribute

Parents, friends, or relatives—even the beneficiary—can contribute to a DC College Savings Plan. And donors can contribute as little as $25 per month.

Investment Choice and Flexibility

The DC College Savings Plan offers two ways to create the portfolio most appropriate for your clients.

  • Customized Portfolio. Through individual equity, bond, and principal stability investment options, both actively and passively managed, you can customize your clients' portfolios to meet their needs.
  • Age-Based Portfolios. The five age-based portfolios feature professionally managed asset allocations with systematic rebalancing. Select the portfolio that matches the account beneficiary's age. As the beneficiary grows older, we will automatically move the account assets to the next appropriate age-based portfolio.

Sustainable and Responsible Funds

The DC College Savings Plan is the only plan in the country to feature a full range of investment options featuring Calvert's unique investment research process, which features two integral components: a rigorous review of financial performance, plus a thorough assessment of environmental, social, and governance performance. Only when a company meets Calvert's standards for both will we invest.

Proceeds Can Be Used at Any College

Unlike prepaid tuition programs, withdrawals from a DC College Savings Plan account can be used at any accredited college, vocational or technical school, university, or graduate school in the United States and some foreign countries to pay for tuition, fees, room and board, books, and other qualified expenses.

Tax Benefits

With the DC College Savings Plan, your clients pay no federal income tax on earnings from money invested in the Plan or on withdrawals used to pay for qualified education expenses. In some cases, your clients' earnings may also be exempt from state income tax.

  • Gift Tax Benefits. The DC College Savings Plan offers your clients a special gift tax exemption. A participant may contribute up to $14,000 annually - or make a contribution of up to $70,000 once every five years ($140,000 for married couples filing jointly) - free of gift taxes, per beneficiary, up to an account maximum of $260,000.1
  • Estate Tax Benefits. If the Plan donor dies during the five-year period, a pro-rata portion of the gift will be included in the donor's gross estate based on the number of years remaining in the five-year period, not including the year in which the donor died.

1. The amount of the tax-free gift may be limited if other gifts are made to the same beneficiary in the same calendar year. Your gift is averaged over the five-year period. If the contributor dies within five years of the date the money was gifted, the portion of the contribution allocable to the remaining years in the five-year period (not including the year in which the contributor died) will be included in computing the contributor's gross estate for federal estate tax purposes.

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We will partner with you to help your clients reach their college savings goals. Get started now:

Contact Calvert's dedicated DC 529 Plan team at 800.368.2745

Review the program disclosure booklet (PDF) with your clients

Review the DC College Savings Plan enrollment forms

For more information on the DC College Savings Plan, please call 800.987.4859 (800.368.2745 for non-District residents) or contact your financial advisor.  An investor should consider the investment objectives, risks, charges, and expenses of an investment carefully before investing.

The District of Columbia College Savings Trust Program Disclosure Booklet contains this and other information. Read it carefully before you invest or send money.

An investor should also consider, before investing, whether the investor's or designated beneficiary's home state offers any state tax or other benefits that are only available to residents of that state. An investment in another state’s 529 college savings plan may not offer comparable benefits.

The Government of the District of Columbia does not guarantee investments in the program. Investment involves risk, including possible loss of principal.