Save here Go anywhere - College Savings Plans of Maryland 2025

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A 529 plan is a tax-advantaged education savings plan designed to encourage families to save for future higher education expenses. The Maryland 529 college savings plans are the only 529 plans that offer a Maryland State income deduction each year for your payments or contributions to the plans.
There are many benefits to using a 529 plan, like federal income tax benefits and state tax deductions. Plus, 529s offer several advantages compared to traditional savings accounts and other methods of saving for higher education.
Overall, for MD residents, the MD 529 plan is a great option. It has state tax benefits (not all states do) and low-cost investment options. For out-of-state residents, there may be better 529 plans out there since you cannot take advantage of MD state tax deductions if you are not an MD resident.
If the beneficiary of a 529 account doesnt go to college, you canchange the beneficiary or take a non-qualified withdrawal. If you take a non-qualified withdrawal, you will incur income tax as well as a 10% penalty tax on the earnings portionof the account.
The account owner of a 529 plan holds all of the legal power. They can change the beneficiary or liquidate the account (with penalty) at any time. This could be a disadvantage if the owner of your or your childs 529 plan has a change of heart about where to direct their investment.

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Chapter 113 of the 2023 Laws of Maryland abolished the Board of the Maryland 529 Program and transferred administrative oversight of Maryland 529 to the State Treasurers Office.

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