Harold Alfond College Challenge is sponsored by Harold Alfond Foundation (administered by FAME NextGen). This program awards a $500 grant to every Maine resident baby whose parents open a college savings account with NextGen before the child reaches one year old. It's a long-term strategy to increase aspirations and access to higher education.

Alfond Grant | NextGen 529 Grants for Maine Residents The $500 Alfond Grant is awarded to Maine resident babies for future higher education expenses. 1 Families can use their $500 Alfond Grant to open a NextGen 529 account, without making an initial contribution. That means they can open a NextGen 529 account anytime and add money when they’re ready.

There are a lot of benefits to saving for college with a NextGen 529 account, including tax advantages, many investment options, and no minimum contribution. After opening a NextGen 529 account, families can take advantage of Grants for Maine Residents , including yearly matching grants for making contributions. These grants can help build savings.

2 Maine Moms, Stay in Touch! Please update your contact information to receive information about the Alfond Grant, education savings programs, and helpful tips as your baby grows! update your contact information A Brighter Future for Maine Babies Did your child receive the $500 Alfond Grant?

Now’s a great time to invest in their future with NextGen 529. The good just adds up. Here’s how.

Alfond Grant + $100 Initial Matching Grant Did your baby receive a $500 Alfond Grant? If you open a NextGen 529 account and add $25 before your baby’s first birthday, you’ll get a $100 Initial Matching Grant. 2 OPEN A SELECT SERIES ACCOUNT WITH YOUR FINANCIAL ADVISOR OPEN A SELECT SERIES ACCOUNT WITH YOUR FINANCIAL ADVISOR Is Your Student Ready to Use the Alfond Grant?

The first recipients of the Alfond Grant are getting ready for life after high school. Get prepared for the journey ahead. Get answers to frequently asked questions about the Alfond Grant.

Don’t see your question? Contact NextGen 529 . What is the $500 Alfond Grant?

The $500 Alfond Grant is awarded to all babies born Maine residents. 1 The Alfond Grant can be used to pay for higher education expenses at eligible higher education institutions and must be used by the child’s 28th birthday. The $500 Alfond Grant program is a legacy gift from late philanthropist Harold Alfond to benefit future generations of Maine children.

Mr. Alfond hoped the $500 Alfond Grant would inspire families to also save for their children’s higher education. Visit MyAlfondGrant. org to learn more.

How is the Alfond Grant awarded? The $500 Alfond Grant is automatically awarded to all babies born Maine residents (since January 1, 2013). See Alfond Grant Guidelines for more information about eligibility.

Babies not born as Maine residents, but who become Maine residents before the age of 1, can receive the Alfond Grant if a NextGen 529 account is opened for the baby’s benefit before his or her first birthday. For such a babies, the Alfond Grant will be linked to the NextGen 529 accounts established for the babies. If your Maine resident baby was born out of state, please call FAME at 800-228-3734.

For children born at Maine General Hospital in 2008 and for children born between 1/1/09 and 12/31/12, whether or not born a Maine resident, the Alfond Grant was awarded if a NextGen 529 account was opened by the child’s first birthday, naming the child as the beneficiary of the account and the child was a Maine resident at the time of account opening. What is the difference between the Alfond Grant and a NextGen 529 account?

The Alfond Grant is a $500 legacy gift from Harold Alfond for Maine children which is invested and has the opportunity to grow while the child it will benefit grows. A NextGen 529 account is an investment account families can use to invest for future higher education. Any growth in a 529 account is tax-free when used for qualified higher education expenses.

3 NextGen 529 offers families a lot of benefits to help them build dedicated higher education savings. Money saved in a NextGen 529 account can be used for many kinds of education—such as two-and four-year degree programs, trade schools, and even qualified online courses—at home or abroad.

While the Alfond Grant will be there for a child—even if their family doesn’t save any more money, lots of Maine families open a NextGen 529 account to invest their own money for their child’s future education. Contributions by parents, family or friends cannot be made directly to the Alfond Grant. But the Alfond Grant can be used to open a NextGen 529 account without making an initial contribution.

Once the child has a NextGen 529 account, parents, family and friends can make contributions to the account 4 and take advantage of other matching Grants for Maine Residents. 2 What can an Alfond Grant be used for? The Alfond Grant can be used to pay for qualified higher education expenses at eligible higher education institutions or at approved postsecondary credential programs.

This includes a long list of expenses associated with postsecondary education such as tuition, fees, books, supplies required by your school or program, and required equipment. You can use the Alfond Grant at any schools that participate in federal student aid programs or at an approved postsecondary credential program.

There are many types of schools that qualify, including two-year colleges such as community colleges–public and private, four-year colleges and universities–public and private, career schools (also known as trade or vocational schools), eligible online schools, and recognized postsecondary credential programs. The Alfond Grant must be used by the child’s 28th birthday or it is forfeited.

When it is time to use my Alfond Grant, how do I withdraw the funds? Withdrawal of Alfond Grant funds can be made using a withdrawal form. Your account servicer may allow other options for withdrawal, such as a verbal withdrawal request by phone.

The Alfond Grant can be paid directly to eligible institutions of higher education, registered and certified apprenticeships, and other recognized postsecondary credential programs for current qualified postsecondary expenses. Withdraw the Alfond Grant, including any earnings, first. The use of grant funds is more restrictive, so consider using these funds before your own NextGen 529 contributions and earnings.

Learn more about making withdrawals from your Connect Account Learn more about making withdrawals from your Direct Account Your financial advisor can help you with a withdrawal from your Select Account . How do I link my child’s Alfond Grant to their NextGen 529 account? You don’t need to do anything!

If your child has the Alfond Grant, FAME will automatically link it to your NextGen 529 account. It can take a bit of time. FAME will notify you once the account has been linked and you can see the grant’s value when you view your account online and on quarterly statements.

Where can I find more information about Harold Alfond and the Alfond Scholarship Foundation? Visit MyAlfondGrant. org to learn more.

Mainers – Connect with our College Savings Counselors for FREE Account Opening Support! Which 529 Account Is Right for You? NextGen 529 offers three types of accounts I’m new to investing and want a simplified approach You want to open an account yourself and don’t want to choose from a lot of investment options.

Connect Accounts can be a great way to get started investing for higher education. I’ll choose and manage my own investments You want to open an account yourself and build a college savings plan that works for you. Direct Accounts offer several investment options, offering flexibility to suit your family’s savings goals.

I’ll work with a financial advisor If you prefer to work with your financial advisor, speak with them about opening a Select Account. Select Accounts offer a wide array of investment options and are offered through a financial advisor. I’m new to investing and want a simplified approach You want to open an account yourself and don’t want to choose from a lot of investment options.

Connect Accounts can be a great way to get started investing for higher education. I’ll choose and manage my own investments You want to open an account yourself and build a college savings plan that works for you. Direct Accounts offer several investment options, offering flexibility to suit your family’s savings goals.

I’ll work with a financial advisor If you prefer to work with your financial advisor, speak with them about opening a Select Account. Select Accounts offer a wide array of investment options and are offered through a financial advisor. Which 529 Account Is Right for You?

NextGen 529 offers three types of accounts Made for those of us who want to open an account ourselves and are looking for a more streamlined, simplified choice. Connect Account Features: Streamlined investment choices Easy to view account platform Emergency savings option by Vestwell, managed on the same online platform Designed for those of us who want more choice and control over investment options for an account.

Multiple investment options Self-directed savings choices Created for those of us who prefer to work with a financial advisor and want to customize our investing. Multi-manager investment options Advisor and investor account platforms Advisor-managed savings choices 1 The Alfond Grant is not automatic in all circumstances and is also available in limited other circumstances.

The use of the Alfond Grant is also subject to certain restrictions – see Alfond Grant Guidelines . 2 Grants for Maine Residents are linked to eligible Maine accounts. An Alfond Grant recipient is eligible to receive the $100 Initial Matching Grant if the minimum required initial contribution is made before the beneficiary’s first birthday.

Upon withdrawal, grants are paid only to institutions of higher education. See Terms and Conditions of Maine Grant Programs for other conditions and restrictions that apply. Grants may lose value.

3 To be eligible for favorable tax treatment afforded to any earnings portion of withdrawals from Section 529 accounts, such withdrawals must be used for “qualified higher education expenses,” as defined in the Internal Revenue Code. Any earnings withdrawn that are not used for such expenses are subject to federal income tax and may be subject to a 10% additional federal tax as well as state and local income taxes.

Upon withdrawal, the Alfond Grant will be paid only to institutions of higher education. 4 Persons other than the account owner who make contributions will have no subsequent control over the funds contributed to a NextGen account.

Only the NextGen account owner will receive confirmation of account transactions and may direct transfers, rollovers, investment changes, withdrawals and change the account beneficiary (as permitted under federal law). Third party contributors may subject NextGen account owners to tax consequences. NextGen account owners and third party contributors should consult their tax advisors to discuss income or gift tax consequences.

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