Federal Income Tax Benefits

  • Pay no federal income taxes on earnings while money invested in the Plan.
  • Pay no federal, DC, or state income taxes (in most states) on withdrawals used to pay for qualified higher education expenses.

Gift and Estate Tax Benefits

  • Money in a DC College Savings Plan account is not generally considered part of the account owner's estate for federal estate tax purposes.
  • You may contribute up to $14,000 annually—or make a contribution of up to $70,000 once every five years—free of gift taxes, per beneficiary, up to an account maximum of $260,000.

Special Benefits for D.C. Taxpayers

  • Deduct up to $4,000 in Plan contributions from their federal adjusted gross income each year on their D.C. tax return (up to $8,000 for married couples filing jointly if both own accounts).
  • Carry forward as a D.C. income tax deduction any amounts greater than $4,000 contributed to one or more accounts in any tax year. You may carry forward the deduction for up to five years.

A300 (8/13)

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.