PROVIDENCE – The R.I. CollegeBoundfund ranks No. 1 among such state-sponsored 529 college savings plans nationwide, in the latest review by Savingforcollege.com, news that was lauded this morning by R.I. General Treasurer Frank T. Caprio and William H. Hurry, executive director of the R.I. Higher Education Assistance Authority.
“We are extremely pleased by this high rating,” Hurry said. “This will, hopefully, encourage Rhode Island families to save and contribute to a CollegeBoundfund account.”
The Pittsford, N.Y.-based Web site’s quarterly rankings assess 529-plan performance over both 1-year and 3-year periods. The state-sponsored funds offer tax and other advantages to families looking to set aside money for future college costs. The “529” of their name refers to the section of the Internal Revenue Service code that details the funds’ tax benefits.
For the first half of 2007, the Rhode Island 529 fund won first-place rankings from Savingforcollege.com in the following categories: 3-year performance among direct-sold plans; 3-year performance among advisor-sold plans; and 3-year performance among advisor-sold plans with no sales tax. And in the site’s simplified “5-cap ratings,” the CollegeBoundfund received the top, five-graduation-cap rating for residents and a four-and-a-half-cap rating for non-residents.
The Rhode Island plan – administered by the Office of the General Treasurer and the Higher Education Assistance Authority – is sold nationwide. It offers a low minimum investment, flexibility and a wide range of investment options, managed by AllianceBernstein, Caprio and Hurry said in their announcement It also offers tax deductions for state residents plus a 5 & 10 Matching Grant Program to assist low- to moderate-income Rhode Island families.
“CollegeBoundfund gives parents a powerful tool to save for their children’s future education,” Caprio said, “and this recognition lets people all over the country know that Rhode Island’s 529 plan is an excellent vehicle for helping them meet their college savings goals.”
To learn more about the R.I. CollegeBoundfund, visit ri.CollegeBoundfund.com.