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How Did We Get Here

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The earnings are tax free when used ... ARE THERE FEDERAL TAX BENEFITS? ... tax deferred savings and as of January 1, 2002, the earnings are federally tax ... – PowerPoint PPT presentation

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Title: How Did We Get Here


1
How Did We Get Here?
2
  • 1998 Launch
  • Slow Start
  • No State Guarantee

3
  • 2000 Legislature passes Legislative Guarantee
  • Total enrollment doubles
  • 5,200 ? 10,500
  • Legislature also authorizes launch of new College
    Investment Plan

4
How to market two 529 college savings plans?
  • Goals
  • Maintain identity of the Prepaid College Trust
  • Market prepaid and savings as two options under a
    single umbrella name
  • Single marketing campaign, toll-free number, web
    site
  • Seek vendor to manage College Investment Plan

5
2001 Launch
  • July T. Rowe Price selected to manage the
    Maryland College Investment Plan
  • August December
  • Marketing
  • Developed and executed integrated marketing
    plan and budget
  • Operations
  • Use single records administration system

6
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8
MARYLAND PREPAID COLLEGE TRUST OFFERS THE
SECURITY OF A LEGISLATIVE GUARANTEE HOW CAN I
USE IT? Use it to pay the full instate tuition
and mandatory fees at any Maryland public college
or up to the weighted average tuition toward
nearly any private or outofstate college
nationwide. WHATS UNIQUE ABOUT IT? It lets you
lock in tomorrows tuition at todays prices, and
it is backed by a Maryland Legislative
Guarantee. WHAT ARE THE MARYLAND TAX
BENEFITS? The earnings are taxfree when used
toward eligible college expenses. You can deduct
up to 2,500 of your payments each year from your
Maryland income for each contract you have
purchased 5,000 for two, 7,500 for three,
etc. Payments in excess of 2,500 per contract
can be deducted in future years until the full
amount of your payments has been deducted. ARE
THERE FEDERAL TAX BENEFITS? Yes, starting with
taxdeferred savings and as of January 1, 2002,
the earnings are federally taxfree when used
toward eligible college expenses. (Through
December 31, 2010.)
MARYLAND COLLEGE INVESTMENT PLAN MANAGED BY T.
ROWE PRICE HOW CAN I USE IT? Use it at nearly
any public or private college nationwide for any
eligible college expense such as tuition, fees,
room and board, books, course-specific fees or
supplies. WHATS UNIQUE ABOUT IT? You can choose
from 10 different investment options ranging
from more aggressive to more conservative
investment strategies. Your investment return and
principal value may vary. WHAT ARE THE MARYLAND
TAX BENEFITS? The earnings are taxfree when used
toward qualified college expenses. You can deduct
up to 2,500 of your contributions each year from
your Maryland income per account 5,000 for
two, 7,500 for three, etc. Contributions in
excess of 2,500 per account can be deducted for
up to the next 10 years. Contributions in
following years could be eligible for deduction
however, you cannot deduct more than 2,500 per
account in any year nor extend the 10-year limit
on each years contribution. ARE THERE FEDERAL
TAX BENEFITS? Yes, starting with taxdeferred
savings and as of January 1, 2002, the earnings
are federally taxfree when used toward eligible
college expenses. (Through December 31, 2010.)
9
2002 Experience
Prepaid College Trust College Investment
Plan Accounts 14,400 37,000
Invested Assets 90 million 140 million
Committed Savings gt230 million ---
As of 4/ 30/02
10
Goals - 2003 and Beyond
  • Continued success of both plans through joint
    marketing and consumer education
  • Enhance customer service through online account
    access
  • Relative success of the plans likely to be
    influenced by current economic conditions
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