- REP. MEREDITH STRANG BURGESS REMINDS CONSTITUENTS
OF BABY BONUS PROGRAM

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(02.03.10) AUGUSTA, ME - Rep. Meredith Strang Burgess (R-Cumberland) would like to remind her constituents of a unique opportunity available to Mainers: the Harold Alfond College Challenge. Thanks to the generosity of the late Harold Alfond, founder of the Dexter Shoe Company, babies born in Maine qualify for $500 to start a NextGen education savings account.

The NextGen College Investing Plan is a tax-advantaged way to save for future higher education expenses. The funds can be used at accredited post-secondary schools, including colleges and universities, community colleges and trade schools. The NextGen Plan’s earnings grow tax-free from Maine and federal taxes and remain so long as the withdrawals are used for qualified higher education expenses, such as tuition, room and board, books and supplies and expenses related to special needs beneficiaries.

No initial or subsequent contributions are needed and no family income restrictions apply. The account's owner, usually a parent or legal guardian, must be at least 18 years of age. Applications for the grant must be made before the child reaches his or her first birthday. Once a NextGen account is established, parents and grandparents can take advantage of a special five-year gift rule to contribute up to $130,000 per couple or $65,000 per individual for each beneficiary.

To arrange for enrollment in the Harold Alfond College Challenge, contact the Finance Authority of Maine at 1-800-228-3734 or visit online atinfo@500forbaby.org.

 

 

Rep. Strang Burgess is a second-term legislator representing House District 108, which includes Chebeague Island, Cumberland, Long Island and part of North Yarmouth.