Maryland Treasurer announces 6% retroactive earnings rate for Maryland 529 holders
BALTIMORE -- Maryland Treasurer Dereck Davis announced Monday, a retroactive 6% earnings rate for Maryland Prepaid College Trust holders.
The decision comes after the Treasurers office assumed responsibility for Maryland 529 and its Programs on June 1.
Contributions before November 1, 2021, will grow at a rate of 6%, compounded monthly. The rate will apply retroactively to the date of contribution, according to the treasurer's office.
The earnings rate will persist until the rate drops to zero, benefits are withdrawn, or the contract gets terminated.
For contributions on or after November 1, 2021, the annual earnings rate on for contributions will be the same as the rate on a 10-year Treasury note. Also compounded monthly, those rates will remain effective until the earnings rate is set to zero, the date benefits are withdrawn, or the date of contract termination.
The treasurer said claims won't need to be filed to receive the earnings, and will appear in accounts as soon as the system is updated.
A decision to change the earnings rate to zero percent is expected no later July 1.
The news comes after