Tax Deduction is More Good News for College Savings Plan

RALEIGH, N.C., Aug. 28 /PRNewswire/ -- The newest advantage of North Carolina's National College Savings Program is a state income tax deduction for contributions.

For tax year 2006, qualified taxpayers may deduct contributions to North Carolina's 529 plan of up to $750 for individuals or $1,500 for joint filers. In 2007, the deduction allowed increases to $2,000 or $4,000. Some income restrictions apply. Consult your financial, tax or other advisor for more information.

And, Congress recently added another advantage for all 529 plans by making a temporary benefit permanent. Earnings in your 529 college savings 529 plan used for qualified college expenses will stay free from federal income taxes. Originally, this exemption was set to expire in 2010.

Two more great reasons to start saving today!

North Carolina's National College Savings Program currently offers 15 investment choices, with 10 new Vanguard funds recently added to its line up. Options range from conservative to aggressive, and include the N.C. Treasurer Dependable Income Fund, MetLife Protected Stock Fund, Wachovia/Evergreen Balanced Fund, NCM Capital Aggressive Stock Fund, Seligman CollegeHorizonFunds, three Vanguard Age-based Options and seven Vanguard Individual Investment Options.

For more information or to enroll, visit http://www.CFNC.org/savings or call toll free 800-600-3453.

The availability of tax benefits may be conditioned on meeting certain requirements.

To learn about North Carolina's National College Savings Program, its investment objectives, risks and costs, read the Program Description available from http://www.CFNC.org/Savings or call 800-600-3453. Check with your or your beneficiary's home state about tax or other benefits associated with investing in that state's qualified tuition plan.

North Carolina's National College Savings Program is a program of the State of North Carolina, established and maintained by the North Carolina State Education Assistance Authority (Authority) as a qualified tuition program under federal tax law, and administered by College Foundation, Inc. (CFI) with administration and record keeping services provided by Upromise Investments, Inc. and Upromise Investment Advisors, LLC (collectively, Upromise). Investment options are made available through NCM Capital Management Group, LLC; J. & W. Seligman & Co. Incorporated; Wachovia Bank, N.A. through its affiliate, Evergreen Investment Management Company, LLC; the State Treasurer of North Carolina; Metropolitan Life Insurance Company (MetLife); and The Vanguard Group, Inc.

Vanguard is a trademark of The Vanguard Group, Inc.