North Carolina's National College Savings Program has added the NC 529 Plan, which is provided by State Employees' Credit Union, to the investment options it offers.
Announced by the College Foundation of North Carolina April 12, the deposit account aims to provide protection of principal and earnings and is insured by the NCUA, according to the foundation. Contributions by North Carolina taxpayers made to the deposit account or any of the other 13 investment options available in the NC 529 plan may be eligible for an annual state income tax deduction.
Earnings on investment options in a NC 529 account also grow free from federal and the state's income tax, and are not taxed by the state or federal government upon withdrawal when used for qualified higher education expenses, according to CFNC.
The new investment option is the culmination of a collaboration between the $19 billion SECU, College Foundation Inc. and the NC State Education Assistance Authority. CFI administers the NC 529 Plan.
"This new option should be particularly appealing for conservative investors who want return without worry about investment loss, or perhaps have an older child who will soon be attending college," said Shera Hube, vice president for marketing and savings at CFI.