The DC College Savings Plan gives you flexibility
With the DC College Savings Plan, you can save for many possibilities. Account proceeds can be used at any qualified higher-education institution: a community college, technical school, vocational school, college and university, or graduate school. You can also change the account beneficiary to another member of the beneficiary's family without penalty.
Use the money for qualified education expenses
You'll pay no federal income tax on money withdrawn from the account if you use it for qualified expenses such as tuition, required fees, room and board, textbooks, and supplies at qualified post-secondary institutions in the U.S. and in some other countries. To find out whether a school is qualified, use the school code search function at http://www.fafsa.ed.gov/.
A beneficiary must be enrolled at least half time for his or her expenses to be qualified. There is no time limit on the use of account money. However, withdrawals for a specific expense must be made in the year the expense is incurred.
You're in control
Some college savings programs allow the account beneficiary to withdraw the money when he or she reaches legal age and spend it on something other than college. That can't happen with the DC College Savings Plan. You, and only you, control the assets in the account, ensuring that the money you set aside is used as you intended.
- Only you, the account owner, can withdraw money from the account, change investments, or change the account beneficiary.
- Requests for withdrawals and beneficiary changes must be made in writing.
- A request to transfer ownership of the account must also be made in writing.
- You may use this account for non-qualified education expenses; however, the earnings portion of the account will be taxed as ordinary income and will be subject to an additional 10% federal surtax.
It's hard to imagine a more convenient way to save
Do you see college in the future for yourself, your child, grandchild, or some other special person in your life? If so, you can open a DC College Savings Plan account right now! The DC College Savings Plan makes saving for education convenient:
- Low initial contribution. Open a Plan account with as little as $25 (if you use automatic deposit).
- Low minimum contribution. Deposit as little as $25.
- Three easy ways to invest. Choose an age-based portfolio, a single fund investment, the stability of principal option, or a combination of options.
- Easy online access to your account. Any time, day or night, check your account balance or verify deposits and debits.
Questions? Talk with a Plan representative between 9 a.m. and 5:30 p.m. eastern time, Monday through Friday, at 800.987.4859 (for DC residents) or 800.368.2745 (for non-DC residents).