In general: A completed NextGen College Investing Plan Account Application, which incorporates a Participation Agreement (the "Account Application"), must be received by the Program Manager before your NextGen account can be established. There is no fee or charge for establishing a NextGen account.
1. Information About You: the Participant
The "Participant" is the account owner. There may be only one account owner ("Participant") named for each account. No joint ownership. Minors may not own a NextGen account.
List the name of the trust as Participant AND complete section 3 of the Account Application.
wishing to open a NextGen account for scholarship purposes should consult the Program Description for more information.
Federal law requires that the NextGen plan obtain the personal and financial information requested in this section.
A successor participant or contingent successor participant may be named to the account when it is opened. Whoever you name as successor participant will own your NextGen account with all rights and privileges upon your death. Trusts may be named as successor participants. See the Program Description for more information.
2. Information About the Student: the Designated Beneficiary
Participants must identify a Designated Beneficiary whose qualified higher education expenses are expected to be paid from the account. There may be only one Designated Beneficiary named for each account. There is no limit on the number of accounts that can be opened for the same beneficiary. The Designated Beneficiary may be the account owner or any other individual. There is no requirement that the account owner and Designated Beneficiary be related in any way. See the Program Description for information about naming a beneficiary and changing a beneficiary.
3. For Transfers From Trust account
Complete this section only if you are funding your investment in the NextGen Plan with assets from an existing trust account.
4. Employment Information
Federal law requires that the NextGen program obtain specific employment information from account owners. Check the appropriate Employment Status box for you, your spouse (if any) and your beneficiary. Also, provide the employment information requested in this section for you, your spouse (if any) and your beneficiary.
5. Non-U.S. Citizenship Information
Complete this section only if the account owner or the account beneficiary is a resident alien and not a U.S. citizen.
6. Participant Investing Information
Federal law requires that the NextGen plan obtain the investing information requested in this section.
7. Choice of Investment Portfolio(s)
You must select an investment option(s) by indicating on the Account Application the percentages of contributions to be allocated to the portfolio(s) selected. The NextGen plan allows you to multi-track contributions and select multiple portfolios in the same account. If you wish to invest in more than one Portfolio you must allocate a minimum of $25 per portfolio. The total portfolio allocations may not exceed 100%. Future contributions will be invested in these portfolio(s) until a new allocation is selected. See the Program Description for information about NextGen Portfolios, changing your investment allocations and/or changing the investment allocation of your future contributions.
8. Initial Contribution in Your account
A minimum initial contribution of $250 is required to open a NextGen account unless you fund your NextGen account through payroll deduction or an automated funding service from a financial institution, in which case no initial contribution is required. (There is a $50 minimum monthly contribution requirement to participate in the NextGen plan automated funding service.) Note: If you are eligible for a $200 Initial Matching Grant, you may open your NextGen account with a minimum initial contribution of $50.
All contributions to NextGen accounts must be cash equivalent contributions in U.S. dollars. The Program does not accept contributions wired directly from a financial institution or another qualified tuition program. Contribution must be drawn on a banking institution located in the United States. Note: Insufficient funds are subject to a $20 fee, which will be deducted from the NextGen account.
if you are submitting an initial deposit with your Account Application and write in the amount of your initial contribution. Make your check payable to "NextGen College Investing Plan FBO [name of your beneficiary]." You must submit a separate check for each Account Application.
if you wish to make automatic contributions to your NextGen account through your bank account. You will also need to compelte Section 10 of the Account Application.
if you wish to contribute through payroll deduction or have your Maine state tax refund deposited into your NextGen account. You will also need to compelte Section 11 of the Account Application.
Once your Account Application has been processed, the Program Manager will mail you an Authorization for Payroll Deduction Form, which you must give to your employer. The Allocation Form contains instructions for your employer, including routing/transit numbers, so that your employer may initiate your payroll direct deposit.
If you wish to contribute into your NextGen account through automatic deposits from your bank account, complete the Automated Fund Service (AFS) section of the Account Application (section 8).
Submitting the Payroll Deduction Allocation Form makes your NextGen account eligible to receive a direct deposit of your Maine state tax refund.
Contribution coupons are available for your convenience.
only if you are an existing Merrill Lynch client and wish to liquidate the assets of your Merrill Lynch money account.
9. Transfers from Custodial accounts, Other Qualified Tuition Programs,
Coverdell Education Savings accounts or U.S. Savings Bonds.
Complete this section only if you wish to fund your NextGen account with:
(a) assets from existing Uniform Gift/Transfer to Minors Action (UGMA/UTMA) custodial account(s) or
(b) from other qualified tuition program (Section 529) assets, Coverdell Education Savings account assets or proceeds from qualifying U.S. savings bonds. In order to complete the rollover you must also complete and submit NextGen's Incoming Rollover Form and provide appropriate documentation.
10. Automated Funding Service (AFS)
To have automatic contributions come from a bank account, complete this section of the Account Application.
Check the appropriate box on the Account Application; be sure to affix your voided check to the Account Application and have the joint account owner (if any) sign where indicated.
Check the appropriate box on the Account Application; a signed letter of authorization from your bank on the bank's letterhead must accompany the Account Application. The letter of authorization should contain your account title, type of account, account number, institution's routing/transit number and your social security number. The joint account owner (if any) must sign the Account Application where indicated.
11. Payroll Deduction Instructions for Multiple Accounts.
Payroll deduction contributions must total at least $50 monthly. You must list all of your NextGen accounts in this section and what percentage of your payroll direct deposit you wish allocated to each account. The total allocation must equal 100%. Allocate 0% to any NextGen account you do not wish to allocate part of your direct deposit.
12. Request for Duplicate Statements.
You must complete this section if you wish to have an interested party receive duplicate account statements. Completing this section of the Account Application does not authorize the interested party to access your NextGen account information from the Program. The interested party cannot initiate, approve or otherwise authorize any transactions or changes on the account.
13. Important Disclosure.
If the NextGen plan is not your home state plan, you should be aware of the information provided in this section.
14. Account Agreement and Signature.
You must sign the Account Application before your NextGen account can be processed by the Program Manager. NextGen accounts will not be established, orders will not be executed, and the Account Application and check will be returned if your Account Application is not complete. By signing this section of the Account Application you acknowledge that you are in receipt of the NextGen Program Description and Participation Agreement Booklet and agree with the terms and conditions of the Program.