The Delaware College Investment Plan

Delware Investment Plan
What is the Delaware Plan?
  • The Delaware College Investment Plan is a 529 Plan sponsored by the state of Delaware and managed by Fidelity Investments.
  • The money can be used for tuition, books, etc. at most accredited two- and four-year colleges and universities, eligible foreign institutions, and vocational-technical schools nationwide.
  • Residents of any state may invest in the Delaware College Investment Plan.1
Tax Advantages
  • Any earnings grow tax-deferred.
  • Distributions for qualified higher education expenses are federal income tax-free.2
Investment Options

The Delaware College Investment Plan offers a choice of portfolios tailored to a child's age, or the ability to customize portfolio selections based on an asset allocation strategy.

Who Can Invest and Benefit?

Any U.S. resident who is 18 years or older can open a Delaware College Investment Plan to save for a student's qualified higher education expenses.

  • There are no income restrictions.
  • The beneficiary can be changed to an eligible member of the original beneficiary's family3 at any time without a penalty.
  • The beneficiary doesn't need to be a child. Adults can use the plans to save for their own qualified higher education expenses.
  • Residents of any state can open a Delaware College Investment Plan account.1
Investing by Grandparents and Others
  • Grandparents or others who wish to contribute to a child's college savings may want to open a separate account.4:
  • The owner (Participant) of the account controls distribution of the assets.
  • The owner (Participant) can take advantage of possible gift and estate tax benefits (see below).
Gift and Estate Planning Benefits
  • Contribute up to $60,000 ($120,000 per married couple) per beneficiary in a single year without incurring a federal gift tax impact.5
  • Once assets are in the account, they are generally considered to be out of the Participant's estate.5
Professional Money Management
Control of Assets and Distributions
  • The account owner (Participant) maintains ownership of the assets until withdrawn.
  • Distributions from the Delaware College Investment Plan can be taken at any time for any reason; however, if the funds are not used for qualified higher education costs, any earnings will be subject to income tax at the Distributee's rate and a 10% federal penalty tax.6
  • If the beneficiary receives a scholarship, the scholarship amount can be withdrawn from the 529 Plan and the 10% federal penalty tax on any earnings will not apply6. However the earnings will be subject to income taxes at the Distributee's rate.
  • Withdrawing money from the Delaware College Investment Plan is easy, simply fill out the Distribution Form with instructions on where the money should be sent, and submit to Fidelity for immediate processing.
  • If the distribution is going directly to the Participant or Beneficiary (i.e. not the school) call a rep to process the distribution over the phone.
Minimums, Maximums and Fees
  • Minimum initial investment: $500
  • Investors who establish automatic investments can open an account with a minimum initial investment of $50, and a $50 per month or $150 per quarter. Use the College Investing Plan Automatic Contribution Services and Money Line® form to establish this feature.8
  • $20 annual maintenance fee per account (waived with automatic investments, direct deposit or if the combined value of accounts with the same beneficiary is $25,000 or more).
  • The combined balance of accounts for a beneficiary may not exceed $270,000 (the maximum contribution cap for the 2006 calendar year.)
Open an Account