Investment Products Offered By AllianceBernstein Investments
Dear Rhode Islander:
Thank you for your interest in CollegeBoundfund®, the tax-advantaged, section 529 college savings program developed by the State of Rhode Island and managed by AllianceBernstein L.P., one of the world’s premier investment firms. You’ve made the first step toward saving for higher education the smart and easy way!
As you know, post-secondary education is essential in today’s economy. Whether your child wants to be a doctor, an automotive technician or a banker, higher education is critical to competing in the marketplace. But, helping a child attain a degree is one of the most costly expenses a family can bear.
With college costs increasing, families often resort to loans and credit cards to fund their children’s education—payment methods that unfortunately may leave families deep in debt for years to come. The best answer is to start saving early.
CollegeBoundfund is a powerful way to save for college. With benefits such as tax-free earnings growth and no income limits, CollegeBoundfund can be used at accredited colleges, universities, and vocational and trade schools across the nation. It offers a simple way to save and invest for your child’s college education. And the Matching Grant program provides eligible participants with either one dollar or two dollars for each dollar invested, up to an additional $500 or $1,000 each year. It makes a great savings program even better. The availability of such tax or other benefits may be conditioned on meeting certain requirements.1
In the following pages, you’ll discover why CollegeBoundfund is a great vehicle for you to tackle higher education costs. What’s more, as a Rhode Island taxpayer, you can qualify to receive a state income tax deduction for contributions made to CollegeBoundfund of up to $1,000 for married couples filing jointly and $500 for individual filers. And contributions in excess of the annual limit can be carried forward to future years.2
Remember, it’s never too late to start saving for your child’s future!
With best wishes,
Frank T. Caprio
General Treasurer
1Matching grants are subject to availability of funds. If you qualify for this Program, a separate CollegeBoundfund Matching Grant Program Account will be opened by the Rhode Island Higher Education Assistance Authority (RIHEAA) naming your child as Beneficiary. RIHEAA is the Participant of the Account and the Account funds are maintained by RIHEAA for the Beneficiary. For more information about these Accounts, their qualification requirements and their investment selection, please see the CollegeBoundfund Matching Grant Program Description or log on to www.riheaa.org.
2 If a participant makes a non-qualified withdrawal or a transfer/rollover to another state’s program within two years after the deduction is taken, the amount of the deduction is “recaptured” and will be included in the participant’s Rhode Island income. Check with your tax advisor to see how 529 plans are treated for income tax purposes.
