Initial Matching Grant
Eligible Maine accounts can receive a $200 Initial Matching Grant when opening a NextGen account with just $50!
- The NextGen account is opened on or after January 1, 2011 for a new benficiary; and
- Either the account owner or account beneficiary is a Maine resident at the time the grant is awarded; and
- The account beneficiary cannot be eligible for the Harold Alfond College Challenge Grant.
To receive an Initital Matching Grant for a Maine account opened prior to Janaury 1, 2011, the Addendum to the NextGen Account Application must be received by the Finance Authority of Maine (FAME) within 12 months from the date the account is opened and the account owner's family adjusted gross income in the previous calendar year must not be greater than $75,000.
Family adjusted gross income is the income reported by the account owner and the account owner's spouse, if applicable, on the most recently filed federal income tax return, or as reported on Form W-2 if the account owner and the account owner's spouse, if applicable, are not required to file a federal income tax return, or through such other evidence acceptable to FAME.
Although matching grant funds will appear on the NextGen account statement, all matching grant funds, including earnings on matching grant funds if any, remain the property of FAME until used for qualified higher education expenses as defined by the Internal Revenue Code.*
*To be eligible for favorable tax treatment afforded to any earnings portion of withdrawals from Section 529 accounts, such withdrawals must be used for “qualified higher education expenses,” as defined in the Internal Revenue Code. Any earnings withdrawn that are not used for such expenses are subject to federal income tax and may be subject to a 10% federal penalty tax, as well as state and local income taxes.
FAME may modify or terminate any matching grant program at any time.
For more information about the Initial Matching Grant, contact a FAME NextGen Representative or call 800.228.3734.