General Information

Q. What is the Florida College Investment Plan?

A. The Florida College Investment Plan and the Florida Prepaid College Plan are both 529 plans. They are both sponsored by the State of Florida and are both managed by the Florida Prepaid College Board.

The term "529 plan" describes a type of tax-advantaged college plan authorized by Section 529 of the Internal Revenue Code. The money you contribute to these plans grows tax-deferred, and when the student (beneficiary) is ready for college, withdrawals for qualified college expenses are exempt from federal income tax.

Even though many 529 plans are marketed and sold by large financial services companies, by federal law, a 529 plan must be sponsored by a state.

There are two types of 529 plans: prepaid plans and savings/investment plans. The savings/investment type, like the new Florida College Investment Plan, is the one often referred to by financial planners and the media as a "529 plan."

Q. I already have a Florida Prepaid College Plan. Why would I want to sign up for the Florida College Investment Plan?

A. With a Florida Prepaid College Plan, you have prepaid some of your college costs. The Florida College Investment Plan gives you a way to save for the extra expenses not covered by your Florida Prepaid College Plan including books, off-campus housing and the additional costs of most private and out-of-state colleges and graduate school.

Q. Who can participate in the Florida College Investment Plan?

A. Anyone - parents, grandparents, other relatives, friends and even businesses - can open an account.

The account owner and beneficiary (student) do not have to be residents of Florida to participate in the Florida College Investment Plan.

The account owner and beneficiary must be citizens or resident aliens of the United States and have a social security number.

If the account owner is an entity, such as a business, trust or organization, the entity must be organized under the laws of the United States and have a federal taxpayer identification number.

The account owner and beneficiary do not have to be related.

Q. Am I required to live in Florida?

A. No. The account owner and beneficiary (student) can live in any state and do not have to be a Florida resident to participate in the Florida College Investment Plan.

Q. Is there an age limit to participate?

A. There is no age "limit" to participate in the Florida College Investment Plan.

The beneficiary (student) can be any age. The beneficiary can be a child, an adult or even yourself. You cannot, however, open an account for an "unborn" child.

The account owner must be at least 18 years old.

Q. Can more than one child/grandchild be listed on the same account?

A. No. You can only designate one child/grandchild (beneficiary) per account, but you can open a separate account for each child/grandchild.

Q. Can two people open an account for the same student?

A. Yes. Different account owners can open an account for the same beneficiary (student). So, for example, a parent and a grandparent can both open separate accounts for the same student. Whoever is listed as the account owner, controls the account.

Anyone can make contributions to an account; however, only the account owner can authorize a withdrawal, even if someone else has made contributions to the account.

The same account owner cannot open multiple accounts for the same beneficiary The account owner may, however, select different investment options for the same beneficiary. Refer to Investment Options.

Q. Can my spouse and I set up a joint account?

A. No. Only one person can be listed as the account owner. Only the account owner can give instructions, make changes, authorize withdrawals or cancel the account.

The account owner may designate a survivor. The survivor becomes the account owner upon the death of the original account owner. The survivor cannot give instructions, make changes, authorize withdrawals or cancel the account while the account owner is living. The survivor must be at least 18 years old. The account owner can change the survivor at any time, without the prior approval or consent of the survivor.

A husband and wife can both set up separate accounts for the same beneficiary. Whoever is listed as the account owner, controls the account.

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