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IMPORTANT: Day school families once again have the opportunity to benefit from 529 savings accounts. This applies to those looking to create new accounts – as well as those who already have accounts.
The state contribution program (Maryland Match) is available for both new and existing accounts (including those who have previously received the Match), however, preference will be given to new Match applicants.
Even if you have applied for the Match (and received it) in previous years, you MUST apply again anew for the Match each year. If you applied for the Match by May 31st, you will only receive it if you fund each of your beneficiary accounts with the minimal amount required by Nov 1st.
KEY CHANGES in 2021 TO THE STATE CONTRIBUTION program (MARYLAND MATCH)
PLEASE NOTE: A new law was passed in 2021 with the following changes. Of the below items, only items 1 – 3 go into effect for 2021. Items 4 – 6 only go into effect in 2022.
1. A beneficiary may not receive more than two match contributions in a given year
2. An account holder must file income taxes on or before July 15 of each year
3. Each account holder’s lifetime “Match” total (all of their beneficiaries) is capped at $9,000 – NOT per beneficiary
4. An account holder must be a resident of Maryland (beneficiaries have always needed to be Marylanders)
5. The income eligibility of an account holders is based on adjusted gross income and no longer based on taxable net income
6. Beneficiaries must be younger than age 26 in the calendar year before the account holder applies for the state contribution
REMEMBER: Even if an account holder is maxed out of the Match, they are still eligible for the 529 tax deduction benefits