FAQs
Who can open an account?
An account can be established by an individual, a UGMA/UTMA custodian, certain legal entities, or a trust. There are no income or residency requirements.
How do I open an account?
Enroll online, or call 866.529.2228. Enrollment kits are also available for download, or they can be mailed to you for completion.
Who can be a beneficiary?
Anyone, including yourself, can be named as a beneficiary. There are no age, income, or residency limitations. Each account can have one designated beneficiary.
Who can make contributions?
Parents, grandparents, other relatives—anyone, really—can contribute to a CollegeCounts 529 Fund account on behalf of the beneficiary.
How are contributions made?
The plan is very flexible. You can contribute by:
- Sending a check.
- Establishing an automatic investment plan.
- Rolling over funds from another 529 plan.
- Establishing a payroll deduction at work (check with employer for availability).
- Transferring reward dollars earned with a CollegeCounts 529 Rewards Visa® Card.
Can I transfer assets from another 529 plan?
Yes. You can roll over assets [link to rollover form] from another 529 plan at any time and gain the benefits of the Alabama state income tax deduction. A same-beneficiary rollover/transfer is allowed once in a 12-month period. Additional transfers are allowed but require a change of beneficiary. There may be potential adverse tax consequences if the transfer or rollover is not a qualified rollover. Investors should consult with a tax advisor.
Does the beneficiary have to attend a school in Alabama?
No. Many beneficiaries will attend Alabama schools; however, funds may be used at eligible schools nationwide and some foreign schools too.
Which schools are eligible institutions?
Any postsecondary educational institution that meets accreditation criteria and is eligible to participate in Federal Student Aid programs is eligible. This includes institutions such as public and private colleges and universities; vocational, trade, technical, and professional institutions; and even some foreign schools. Check out a listing of eligible schools from the Department of Education.
What are qualified higher education expenses?
Qualified expenses are certain education-related expenses. The following are qualified higher education expenses for which withdrawals from an account may be used federal and Alabama state income tax-free: tuition, fees, supplies, equipment, books, and reasonable room and board (if the student is enrolled at least half-time). In 2009 and 2010, withdrawals are tax-free if used for a computer, computer equipment, Internet access, and related services.
The CollegeCounts 529 Fund is a qualified tuition program under Section 529 of the Internal Revenue Code that is sponsored by the State of Alabama and administered by the Board of Trustees of the ACES Trust Fund (the “Trust” and plan issuer). Union Bank & Trust Company serves as Program Manager. Accounts and investments under the CollegeCounts 529 Fund are not insured or guaranteed by the FDIC, the State of Alabama, the State Treasurer of Alabama, the Board, the Trust, the Program, Union Bank & Trust Company, or any other entity.
Before investing, you should consider the investment objectives, risks, fees, expenses, and tax consequences associated with the Program. All of this information is contained in the Program Disclosure Statement. Please read it carefully before investing.
If you or your beneficiary is not an Alabama resident, consider whether your home state or the home state of your designated beneficiary offers a qualified tuition program that provides a state tax deduction or other benefits to residents who invest in that program.