September is College Savings Month!
To recognize September is college Savings Month, FAME is hosting NextGen workshop throughout the month of September, to provide an opportunity to learn more about Maine's NextGen plan and its unique benefits for Maine residents. FAME staff will be available at the workshop(s) to offer assistance with completing the account application necessary to open a NextGen college savings account. Click here to select the workshop that best fits your schedule and return the NextGen Workshop RSVP to FAME.
FAME Board Increases NextGen Matching Grant Income Eligibility
The FAME Board of Directors approved broadening the maximum family adjusted gross income eligibility range to receive a NextGen Matching Grant from $57,000 to $75,000. Click here for more information.
Fee Reduction and other Enhancements to NextGen's Client Direct Series
The FAME Board of Directors approved enhancements to the NextGen Direct Series of the NextGen College Investing Plan, effective April 30, 2007. The modifications create a new NextGen Direct Series that will provide self-directed investors with a more simplified offering, an appropriate amount of choice, at a lower cost. Fee reductions include elimination of the Maine Administration Fee; a 53% reduction in program management fees; and a reduction in the underlying fund expenses. When these changes are in effect, the annual asset-based fees in NextGen's Client Direct Series will range from twenty to ninety-eight basis points. Click here for more information.
Maine Income Tax Deduction for 529 Plan Contributions
A tax deduction of up to $250 is now available for Maine taxpayers who make contributions to a NextGen plan. The deduction will be effective for the calendar year commencing January 1, 2007. Click here for more information.
NextGen's Maximum Contribution Limit Increases to $320,000
The New Year brings a higher contribution limit for the NextGen College Investing Plan. Effective January 1, 2007, the maximum aggregate contribution limit for NextGen accounts for one beneficiary is $320,000.
2007 Matching Grant Income Eligibility
Effective January 1, 2007 the income eligiblity requirement to receive a NextGen Initial Matching Grant or a NextGen Annual Mathcing Grant increased to $75,000 or less, as reported on the family’s 2006 federal income tax return. Click here for more information.
NOTE: In May 2007, FAME plans to mail the 2007 Annual Matching Grant Certification (which provides for the match on contributions made in 2006) to account owners of Maine NextGen accounts receiving contributions in 2006.
NextGen First Step Grant Program
Every Maine newborn regardless of family income, is eligible to receive a $50 grant. To clam the $50 grant, open a NextGen account naming the newborn as the beneficiary before the baby's first birthday. FAME will deposit the $50 grant into the account. Click here for more information.
New Federal Financial Aid Treatment for 529 plans
Amendments to the Higher Education Reconciliation Act provide favorable financial aid treatment for assets in a 529 Plan. Click here for more information.
