A gift to a DE529 account will last well past the holiday season

The holiday season can be stressful as shoppers search for the perfect present. Opening a DE529 Education Savings Plan account or contributing to an already existing account lets you not only cross a gift off of your list but provide for the future as well.

“There’s no getting caught up in the frenzy of shopping malls and you won’t have to deal with supply chain issues when you give the gift of investing in a loved one’s future,” said Delaware State Treasurer Colleen Davis. “Saving for college never goes out of style like trendy fashion, so why not save instead of spending?”

According to the College Savings Plans Network, over $412 billion are being set aside all over the country for education expenses. In Delaware, $40.6 million were held in DE529 accounts as of the end of the third quarter of 2022.

The DE529 Education Savings Plan makes it easy and affordable to plan ahead for the cost of higher education at colleges & universities, technical & community colleges, trade schools, and many other post-secondary education programs. Sponsored by the State of Delaware and managed by Fidelity Investments, DE529 provides tax-advantaged accounts designed to help parents, grandparents and others pay for higher education expenses.

“You won’t pay any taxes on your money as it grows,” said Treasurer Davis, “plus, withdrawals for qualified higher education expenses like tuition, fees, and books are federal and Delaware income tax-free.”

Opening a new DE529 account for a child under the age of five makes your gift even bigger this year. “First State, First Steps” is an incentive program providing a $100 contribution to a DE529 Education Savings Plan account as long as the beneficiary is a Delaware resident, and the initial investment in the account is at least $100.

To learn more, visit 529.delaware.gov before making your holiday shopping list.

Chaired by local entrepreneur and community leader, board scheduled to meet

As directed by the Delaware EARNS Act created by the signing of House Bill 205, members have been appointed to the Delaware EARNS Program Board.

Board members are:

• Fayetta Blake – Chair
• Colleen Davis – State Treasurer
• Rick Geisenberger – Secretary of Finance
• Christina Haas – Office of the State Insurance Commissioner
• Ethel Belfon – Department of Labor
• Donna Vieira – Chair of the Plans Management Board
• Robert Herrera – Member at Large

Delaware EARNS (Expanding Access for Retirement and Necessary Savings), a State-facilitated, universally available retirement savings plan, providing a convenient way for all workers to save for retirement, requires businesses with more than five employees that don’t currently offer a retirement plan to participate through a simple payroll process.

“I am honored to have been chosen by Governor Carney to chair the Delaware EARNS Program Board,” said Fayetta Blake, the founder and Executive Director of Pathways to Success, Inc., and an entrepreneur with an extensive background in community banking and financial services. “I am excited to work with such committed people on a project that will help secure financial security for Delawareans who currently have no effective way to save.”

The Delaware EARNS Program Board will oversee the initial design and implementation of all administrative aspects of the Delaware EARNS program including, marketing and promotional responsibility, vendor management, and investment oversight.

The inaugural meeting is scheduled for Tuesday October 4, 2022. Details of the meeting including the agenda and how to join virtually or in person can be found on the Delaware Public Meeting Calendar.

“The composition of the Delaware EARNS Program Board could not be stronger given the critical need for the work to be done,” said Treasurer Colleen Davis. “This landmark program could serve up to 150,000 Delawareans, while addressing all three of my top priorities; bolstering retirement security and readiness, creating pathways to economic empowerment, and promoting a culture of financial excellence.”

Ten days remain before application deadline

The application period for the new ASPIRE529 program, which provides $529 for foster youth aging out of the system to use for expenses related to continuing their education, closes July 31, 2022.

“Many young adults face a lot of financial obstacles as they head out into the ‘real world’ for the first time,” said Delaware State Treasurer Colleen Davis. “Those aging out of foster care often face additional struggles related to things like housing and health care. How to pay for education shouldn’t be an extra burden.”

Up to 20 awards of $529 are available on a first-come, first-served basis following review and approval of applications by the Office of the State Treasurer.

To be eligible for an award, a student must:

• Be under age 26, and:
  • At least 14 years old and currently in Department of Services for Children, Youth, & Their Families (DSCYF) Custody (foster care); or
  • Exited DSCYF Custody to adoption or guardianship at the age of 16 years or older; or
  • Aged out of foster care in Delaware at age 18.
• Complete a current-year Delaware Aspire529 application prior to the deadline. (July 31st)
• Be a Delaware resident.
• Be a U.S. citizen, permanent resident, or approved refugee.
• Be an undergraduate student.
• Show proof of enrollment or attendance at an institution of higher learning or trade school, AND if already attending, must be making satisfactory academic or vocational progress toward completion of that program. Proof of enrollment or attendance can be requested through your school’s registrar or administrative offices.

In addition to the $529, recipients will receive two private financial coaching sessions thanks to a partnership with $tand By Me®.

The online application can be found at de.gov/aspire529.

Sends almost $44 million to 55 municipalities

Using a secure process developed last year when the federal government sent American Rescue Plan Act of 2021 (ARPA) money to Delaware for its 55 non-county, non-metropolitan governments, the Office of the State Treasurer completed a second distribution to local municipalities to continue recovery efforts from the pandemic.

“The $43,956,383.61 we delivered over the past several days represents the second tranche of funds from ARPA for our local municipalities,” said Treasurer Davis.

As with the first ARPA distribution in June 2021, a dashboard on the State Treasurer’s website tracked the progress of the distribution process to Delaware’s 55 local municipalities. The dashboard can be found at de.gov/arpa.

“It became essential to get this money into the hands of the local decision makers as quickly as possible,” Treasurer Davis said. “I began advocating in early January 2021 for local municipalities to get the money directly from the U.S. Treasury, and not have them wait for distribution through the State like they waited for CARES Act money.”

Government officials must report annually on all of their funded projects, including descriptions, expenses, and status, but many local municipalities had questions about how the money could be used.

“Through our outreach, we realized many local municipalities lacked sufficient guidance with regard to meeting the requirements for the use of funds established by the federal government,” Treasurer Davis said. “As a result, we worked with the Governor’s office and the League of Local Governments to secure a centralized legal and compliance resource that local municipalities could use.”

The two-tranche distribution from the Office of the State Treasurer to Delaware’s local municipalities totals $87,912,767.23.

The holiday season can be stressful as gift givers search for the perfect present. Add to that this year’s supply chain issues and possible toy shortages, and shopping for the holidays could be extra hectic. The DE529 Education Savings Plan will never be out of stock or difficult to find.

“The best holiday gifts are ones you keep for years,” said Delaware State Treasurer Colleen Davis. “Imagine the joy of not only helping someone further his or her education but helping them avoid crippling student loans in the future. A new DE529 account or a contribution to an existing one provides that joy.”

According to the College Savings Plans Network, over $464 billion dollars are being set aside all over the country for education expenses. In Delaware, total contributions for 2020 were $53.3 million. As of September 30, 2021, contributions already totaled $49.2 million.

“It’s never too early to start saving, and thankfully, many Delawareans are taking that seriously,” Treasurer Davis said. “Forty-eight percent of new accounts opened during the third quarter of this year are for children under age five.”

Sponsored by the State of Delaware and managed by Fidelity Investments, the DE529 Education Savings Plan makes it easy and affordable to plan ahead for the cost of higher education at colleges & universities, technical & community colleges, trade schools and many other post-secondary education programs. Money in a DE529 account grows on a tax deferred basis, and withdrawals for expenses like tuition, fees, and books are federal and Delaware income tax-free.

Learn more by visiting 529.delaware.gov before finalizing your shopping list.