Effective January 1, 2010 the Annual Matching Grant Program will not be renewed. Contributions made to a NextGen account on or after January 1, 2010 will not be eligible for the Annual Matching Grant.
An Annual Matching Grant is still available to eligible NextGen accounts that received contributions of at least $50 in calendar year 2009 of 50% of contributions for a maximum annual match for any one beneficiary of $200.
To qualify, either the NextGen account owner or the account beneficiary must be a Maine resident and the account owner’s family adjusted gross income in 2009 must have been $75,000 or less.
To claim the Annual Matching Grant on the contributions made in 2009 to a NextGen account, the NextGen account owner must complete and submit to FAME the 2010 Annual Matching Grant Certification by June 30, 2010. For example, if $400 was contributed in 2009 to an eligible NextGen account, the account can receive a $200 match in 2010 as long as a completed Annual Matching Grant Certification form is received at FAME on or before June 30, 2010. Forms will be available by January 31, 2010 for download or will be mailed upon request.
NextGen Initial Matching Grant
A one-time $200 Initial Matching Grant is available to eligible Maine families to open a NextGen account.
To qualify, either the NextGen account owner or the account beneficiary must be a Maine resident and the account owner’s family adjusted gross income in the previous year must have been $75,000 or less.
To claim the grant, the NextGen account owner must submit a completed Addendum to Account Application to FAME. FAME will award the $200 Initial Matching Grant to eligible NextGen accounts only after the account is opened and account number assigned.
Harold Alfond College Challenge
A one-time $500 grant is available to all Maine resident babies to open a NextGen account, regardless of family income. Click here for more information.
Employer matches to NextGen accounts to help employees finance lifelong learning.
The Maine Department of Labor, in partnership with FAME and others, established the Maine LiLA Program (Lifelong Learning Accounts) to help Maine workers upgrade their skills and education while meeting the demands of businesses for a skilled workforce.The Maine LiLA Program also provides free advising services to employees to assist in education and career planning.
To qualify, the employer must agree to participate in the program and the employee must open a NextGen account as the account owner and also be named as the account beneficiary. Other conditions apply.
If either the NextGen account owner or the account beneficiary is a Maine resident, an amount approximately equal to the annual Maine Administrative Fee (15 basis points) paid during the year will be automatically rebated back to the NextGen Account in January of the following year. (Only accounts with a balance of $1,000 or more are eligible.)
Tax Deduction
Individuals who file Maine state income tax returns and make contributions to any states' 529 plan during the year may deduct up to $250 per beneficiary. The taxpayer must have a federal adjusted gross income of $100,000 or less ($200,000 or less for joint filers or heads of household).
Other Maine Benefits
- Account Maintenance Fee Waived for Maine Residents. The annual account maintenance fee is waived on accounts when either the account owner or the account beneficiary is a Maine resident.
- Investments in Maine. A percentage of the cash portion of the NextGen Investment Fund is invested in the Certificates of Deposit at Maine financial institutions to help grow the Maine economy.
- Offered through Maine-based financial advisors and financial institutions.
- Direct Deposit Maine Income Tax Refunds. Maine taxpayers have the ability to fund their NextGen account by requesting a direct deposit of the Maine income tax refund.
NextGen Student Grant Program
FAME provides NextGen scholarships to Maine undergraduate students whose expected family contribution exceeds the maximum Pell Grant eligibility criteria, but exhibit financial need.
NextGen Access Scholarship Program
FAME provides NextGen scholarships to Maine’s non-traditional student-beneficiaries attending institutions of higher education. The scholarships will be awarded to Maine students who exhibit financial need and for whom no state grant monies are available. FAME works closely with the financial aid community to implement the scholarship criteria and award procedures. Scholarships awards can be up to $1,000 per student.