Any U.S. resident can open a NextGen account, regardless of income or state of residence. The individual who is named as the "participant" on the NextGen account application is considered the account owner. Eligible account owners include parents, grandparents, other relatives, and even family friends. The student for whose benefit the account is established is called the "beneficiary." Minors may not own a NextGen account. The plan does not permit joint ownership of accounts and only one designated beneficiary can be named per account . There are no age limits or relationship requirements when naming a NextGen account beneficiary.  There are no limits on the number of accounts that can be owned by the same individual or for the same beneficiary.

Qualified higher education expenses include tuition and fees, room and board, books and required supplies and expenses related to special needs beneficiaries at any accredited post-secondary institution which is eligible to participate in federal student assistance programs - including public universities, private colleges, graduate schools and vocational schools.

In general, in order to be considered eligible, a school must be eligible to participate in Title IV federal financial aid programs. If a school has been assigned a federal school code by the U.S. Department of Education, then it has met these requirements and is eligible under Section 529. To see if a particular school has a federal school code assigned (and therefore is eligible under Section 529), enter the name of the institution at the Department of Education's website and check out the results. Note: Some foreign institutions are eligible.

Federal Title IV schools.

Earnings grow free from federal income tax and are federally tax free upon withdrawal for qualified higher education expenses. Non-Maine residents should check with their tax professional regarding tax treatment in their state. Contributions are non deductible for federal income tax purposes. You should consider whether your home state or your designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's 529 plan.

The minimum initial investment required to open an account is $250. However, if you sign up for automated contributions when you open your NextGen account, then there is no minimum investment required. You may elect automated contributions in to your NextGen account of at least $50 per month, $150 per quarter, $300 per semi-annual period, or $600 per year. If you elect to have contributions invested in more than one portfolio, the minimum initial and subsequent investment is $25 per portfolio.

Contributions can be made until the aggregate value of all accounts set up for the same beneficiary reaches $320,000. This limit is based on the average cost of higher education at an index of private colleges and universities. This limit will be adjusted periodically to reflect the changing costs of higher education.

You may also be able to take advantage of a special gift tax election that applies to certain contributions to Section 529 plan accounts. This election generally allows you to contribute up to $60,000 per beneficiary in one year without federal gift tax implications, as long as you do not make any additional gifts to your beneficiary for the next 5 years. Married couples can generally contribute up to $120,000 per beneficiary in a single year. See the NextGen Program Description in the Enrollment Kit for more complete information.

You must first decide whether to invest in the Client Direct Series or the Client Select Series portfolios. After selecting the NextGen series that's right for you, you must choose how to allocate your contributions. The program offers you a choice of portfolios that give you the benefit of professional investment management.

The NextGen Client Direct Series is designed for investors who are not seeking advice and guidance from a financial advisor.

The Client Direct Series includes portfolios of mutual funds managed by Massachusetts Financial Services Company (MFS), BlackRock Investment Management, LLC (BlackRock), Oppenheimer Funds (Oppenheimer), in addition to a guaranteed option (Principal Plus Portfolio). Click here for more information about the Client Direct Series portfolios for pick up enrollment materials at your local Maine bank.

The NextGen Client Select Series is designed for investors who want professional advice and guidance to help them simplify the challenging decision of how to invest to meet the rising costs of higher education. An investment professional will work with you to help define your investment strategy, your time horizon, your risk tolerance and other criteria to assist you in reaching your goal.

The Client Select Series includes portfolios of mutual funds managed by BlackRock Investment Management LLC (BlackRock), Massachusetts Financial Services Company (MFS), Franklin Templeton Investments (Franklin Templeton), OppenheimerFunds Inc. (OppenheimerFunds), in addition to a guarantted option (Principal Plus Portfolio). For more information about the Client Select Series click here for a list of particpating financial advisors (Maine Distribution Agents).

No. The NextGen Plan does not guarantee your investment or any specific rate of return. The value of your account may increase or decrease, based on the investment performance of the investment which you select.

The NextGen Plan does, however, offer a guaranteed option (Prinicipal Plus Portfolio) which provides participants with protection of the principal and a minimum rate of return, before the deduction of fees and expenses.

You can choose from several options:

• You can leave the money in the account. The earnings will continue to grow federal income tax-deferred and, if the beneficiary decides to attend college in the future, may be withdrawn tax-free for qualifying higher education expenses.

• You can change the beneficiary to a qualifying family member of the current beneficiary with no penalty. For example, you may decide to transfer the money to an account to pay for the higher education expenses of a sibling.

• You can make a non-qualified withdrawal. You retain control of your NextGen account and can decide to take your money back at any time with a 10% penalty on the earnings portion only. You will also owe ordinary income tax on any earnings at your current tax rate.

Yes. Contributing to a NextGen account will not affect your eligibility to receive these tax credits. However, you must meet the federally mandated requirements for the Hope and Lifetime Learning credits. In general, single tax filers whose annual adjusted gross income does not exceed $45,000 and married taxpayers whose annual adjusted gross income does not exceed $90,000 can take full advantage of these credits. Taxpayers with incomes between $45,000 and $55,000 (single) and between $90,000 and $110,000 (married) are eligible to take partial advantage. Taxpayers with incomes above $55,000 (single) and $110,000 (joint) cannot use these credits at all.

Yes.

If you have established a custodial account for a child under the Uniform Gift/Transfer to Minors Act (UGMA/UTMA), you may be eligible to liquidate those assets and deposit the proceeds into a NextGen account. Certain restrictions may apply. See the NextGen Program Description for more complete information.

You may be able to roll over assets from another qualified tuition program or a Coverdell Education Savings Account to a NextGen account. You are generally permitted one rollover of assets from another qualified tuition program each year without having to change the beneficiary. See the NextGen Program Description for more complete information.

No. You must make contributions to your NextGen account with cash (e.g., by check or electronic funds transfers).

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