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State Employees CU offers college savings investment
RALEIGH, N.C. (4/22/10)--North Carolina’s National College Savings Program (NC 529 Plan) has added the Federally Insured Deposit Account, which is provided by State Employees’ Credit Union (SECU), Raleigh, N.C., to the investment options it offers. Announced by College Foundation of North Carolina on April 12, the deposit account provides protection of principal and earnings, offers a competitive interest rate, and is insured by the National Credit Union Administration. The new investment option is the culmination of collaboration between SECU, College Foundation, Inc. and the North Carolina State Education Assistance Authority. “SECU members have expressed an interest in this type of account, and we are very pleased that credit union members and non-members interested in investing for college have this option,” said Joan McCool, senior vice president of SECU’s Individual Retirement Account & Investment Services department. A 529 Plan is a tax-advantaged education savings plan operated by a state or educational institution and is designed to help families set aside funds for future college costs. Contributions by North Carolina taxpayers made to the Federally Insured Deposit Account or any of the other 13 investment options available in the NC 529 Plan may be eligible for an annual state income tax deduction. Earnings on investment options in a NC 529 account also grow free from federal and North Carolina income tax, and are not taxed by North Carolina or the federal government upon withdrawal when used for qualified higher education expenses. “This new option should be particularly appealing for conservative investors who want return without worry about investment loss, or perhaps have an older child who will soon be attending college,” said Shera Hube, vice president for marketing and savings at College Foundation, Inc., which administers the NC 529 Plan. Steve Brooks, executive director for the North Carolina State Education Assistance Authority, which established and maintains the NC 529 Plan, added: “We have worked with SECU on several projects that have been a real benefit to families paying for college. Making a federally insured investment option available now for all NC 529 Plan participants to consider is another good example of how our organizations collaborate to make higher education possible.”
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