RALEIGH, N.C. – State Employees’ CU yesterday rolled out a new tax-deductible 529 college savings plan in conjunction with North Carolina's National College Savings Program.
The program’s 14th and newest option provides protection of principal and earnings, a competitive interest rate, and is insured by NCUA.
Individual contributions to the new 529 fund option may be eligible for an annual state income tax deduction. Earnings on investment options in an NC 529 account also are free from federal and state income tax when used for qualified higher education expenses.
Besides the new Federally-Insured Deposit Account, other NC 529 investment options continuing as part of the NC 529 plan are: the Active Core Equity Fund, managed by NCM Capital Management Group, Inc. of Durham; the Dependable Income Fund, managed by the North Carolina State Treasurer; and, three Age-Based V Funds (aggressive, moderate and conservative) and a variety of other individual V Fund Options, all comprised of underlying funds from The Vanguard Group.
More than 200 North Carolina employers now offer the opportunity to contribute to the NC 529 plan via payroll deductions.
