NC 529 Plan Investment Options Called 'Very Strong Choices for In-State Residents' in 'Above Average' Rating by Morningstar

RALEIGH, N.C., Nov. 22, 2010 /PRNewswire-USNewswire/ -- The North Carolina 529 plan has been rated "Above Average" by Morningstar, Inc., a leading provider of independent investment research, based on a complete evaluation and analysis of 53 of the nation's largest 529 plans.  

Being rated "Above Average" puts the NC 529 Plan in the group described by Morningstar as "very strong choices for in-state residents, and, in some cases, they may be worthy of consideration for nonresidents."  

This is the second high rating for the NC 529 Plan in the past month.  In its October 2010 issue, Money Magazine highlighted the NC 529 Plan as one of the three top college-savings plans in the nation.

The age-based investment options are comprised of funds managed by Vanguard, and certain other individual Vanguard funds are also available for investment through the NC 529 Plan.  In addition, the Plan currently includes three other options provided by NCM Capital Management Group, the State Treasurer of North Carolina and North Carolina's State Employees' Credit Union (SECU).

North Carolina taxpayers contributing to accounts in the NC 529 Plan can benefit from an available state tax break.  Whether the NC taxpayer is an NC 529 account owner or contributing to someone else's NC 529 account,  his or her contributions to an NC 529 account of up to $2,500 for individuals ($5,000 for joint filers) per year are currently eligible for a state tax deduction.  For example, according to certified financial planner Holly K. Nicholson, a married couple filing jointly with income of $75,000 and contributing $5,000 (including roll-overs from another 529 plan) to the NC 529 Plan may save as much as $350 in N.C. state income tax.

529 account earnings are also free from federal and state taxes as long as college savings are used for qualified higher education expenses such as tuition, room and board, books, fees and required equipment.  Money in an NC 529 account can be used at almost any four-year or two-year college, in-state or out-of-state.

Go to CFNC.org/NC529 to learn more about North Carolina's 529 college savings plan, to enroll or to make a contribution.  If you have any questions about the NC 529 Plan, call College Foundation of North Carolina toll-free 1-800-600-3453.

SOURCE College Foundation of North Carolina