New College SAVE features benefit residents

Bank of North Dakota is reducing fees to 50 basis points in its 529 College SAVE Plan, passing on significant savings for direct sold customers. The reduction of five basis points for customers, who primarily consist of North Dakota residents, comes in addition to a 30-basis point reduction in 2017. The fee decrease for direct sold customers and future enrollees was effective March 1, 2020.

In addition, passage of the SECURE Act in December 2019 allows 529 account owners to take qualified distributions for approved apprenticeship programs and to pay principal and interest on qualified student loans. North Dakota residents also benefited in 2018 when the Tax Cuts and Jobs Act expanded the use of 529 plans to include paying K-12 tuition annually up to $10,000 at private and religious schools.

“It is important that North Dakota residents appreciate the flexibility of 529 plans and take advantage of the unique College SAVE match programs offered through the Bank,” stated Bank of North Dakota President Eric Hardmeyer. “Investing in a College SAVE 529 Plan when a child is young can significantly decrease the amount of student loans required later.”

College SAVE is the state-sponsored 529 plan administered by Bank of North Dakota. An account grows state and federal tax deferred and can be opened for as little as $25. College SAVE has two match options available for North Dakota residents. The New Baby Match doubles a $200 investment before a newborn’s first birthday, and the BND Match offers up to $300 for those who meet generous income guidelines. In addition, residents can deduct contributions annually from their North Dakota taxable income.

College SAVE customers may also choose from hundreds of financial advisors across North Dakota that are contracted to sell the 529 plan. Those using an advisor for investment advice and assistance in enrolling are charged a competitively priced 85 basis points.

The only state-owned bank in the nation, Bank of North Dakota is overseen by the Industrial Commission, which consists of Governor Doug Burgum, Attorney General Wayne Stenehjem and Agriculture Commissioner Doug Goehring.