A 529 College Savings Plan is a tax-advantaged college savings program that was created to encourage families to save for their children's higher education. Eligibility is extended to any civilian employee, retiree, and military personnel or contractors assigned to NSA-W headquarters. Features of the plan include:
- Accounts can be established for any child.
- Earnings grow tax-deferred while the account owner controls the assets; qualified withdrawals are tax-free.
- Higher education expenses include tuition, fees, room, board, textbooks, supplies, and equipment that are required for the child to attend any college, university, vocational school, or post-secondary educational institution.
- Account owner retains control and flexibility with the option to change account beneficiaries or withdraw the funds at any time, subject to income tax and penalties.
- Contributions are invested in College Sure CD's- Certificate of Deposits that are indexed to college cost inflation of the Independent College 500 Index (CI500).
- Account has an interest rate floor of 2%.
- Principal and interest are backed by the full faith and credit of the US Government with FDIC insurance up to $100,000 per depositor.
- Lifetime Contribution limit of $197,000
- Minimum investment of $250 lump sum or $100 monthly