BALTIMORE Maryland has joined 36 other states in having a section 529 college savings plan in operation, and T. Rowe Price Associates Inc. got the nod to offer and manage it.
The Maryland College Investment Plan lets individuals invest up to $175,000 of pretax dollars for a childs college education. When withdrawn, funds are taxed at the lower students rate rather than the parents rate.
The plan, sales of which began Thursday, is available to nonresidents as well as residents of the state. The funds can be used at any college.
Maryland had previously only offered a prepaid college trust plan, which lets state residents save in a deposit account and bases payout on costs at Maryland public colleges. The state will continue to offer that plan, which is managed by its Prepaid College Trust Board.
