Making Contributions
Please see the many options below for making initial, ongoing or additional contributions to your NextGen account.
A minimum initial contribution of $250 is required to open a NextGen account unless you fund your NextGen account through payroll deduction or the Automated Funding Service (AFS). There is a $50 minimum monthly contribution requirement to participate in either payroll deduction or AFS.
Note: If you are eligible for a $200 Initial Matching Grant, you may open your NextGen account with a minimum initial contribution of $50. If your beneficiary is eligible for the $500 Harold Alfond College Challenge Grant no initial contribution is required.
Making an additional contribution to your or a loved one’s account is easy. Use our convenient contribution coupons to make it happen. Through the power of tax-free compounding, even relatively small amounts invested regularly can potentially, over time, add up.
If you choose to make a larger contribution to a beneficiary’s NextGen account, you may find that you are eligible to make a special gift-tax election that could reduce taxes on your estate, making NextGen an effective way to help manage taxes and invest in the special people in your life.*
*Contributions between $13,000–$65,000 ($26,000–$130,000 for married couples filing jointly) made in one year can be prorated over a five-year period without you incurring gift taxes or reducing your federal unified estate and gift tax credit. If you contribute less than the $65,000 ($130,000 for married couples filing jointly) maximum, additional contributions can be made without you incurring federal gift taxes, up to a prorated level of $13,000 ($26,000 for married couples filing jointly) per year. Gift taxation may result if a contribution exceeds the available annual gift tax exclusion amount remaining for a given beneficiary in the year of contribution. For contributions between $13,000–$65,000 ($26,000–$130,000 for married couples filing jointly) made in one year, if the account owner dies before the end of the five-year period, a prorated portion of the contribution may be included in his or her taxable estate for estate tax purposes. Please consult your tax and/or legal advisor for such guidance.
NextGen accounts can be funded through payroll deduction, automatic withdrawals from your bank account – known as the Automated Funding Service (AFS), or direct deposit of your Maine State income tax refund. Click here to access the necessary forms to initiate one of these processes.
NextGen accounts may be funded through transfers from Custodial accounts, other Qualified Tuition Programs, Coverdell Education Savings accounts or U.S. Savings Bonds.
IMPORTANT NOTICES
All contributions to NextGen accounts must be cash equivalent contributions in U.S. dollars. The Program does not accept contributions wired from a financial institution or another qualified tuition program. Contributions must be drawn on a banking institution located in the United States. Please note that checks returned for insufficient funds are subject to a $20 fee, which will be deducted from the NextGen account.
For more information contact a FAME NextGen Representative or call 800.228.3734.
Any information presented about tax considerations affecting client financial transactions or arrangements is not intended as tax advice and should not be relied upon for the purpose of avoiding any tax penalties. None of Merrill Lynch or its Financial Advisors or any Maine Distribution Agents, FAME or the Maine State Treasurer provide tax, accounting or legal advice. Clients should review any planned financial transactions or arrangements that may have tax, accounting or legal implications with their personal professional advisors.