Minnesota College Savings Plan

Matching Grant

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Minnesota College Savings Plan account owners may apply for a State of Minnesota matching grant on behalf of their account beneficiary. Account owners do not need to be the beneficiary's parent(s) or legal guardians.

To qualify for a matching grant, the account owner must have made a minimum $200 account contribution by December 31 and have made an annual application by May 1 of the year immediately after the calendar year in which contributions were made.  In addition, the account beneficiary must meet Minnesota residency requirements and have a family income less than $80,000.

If the beneficiary's family income is $50,000 or less, the matching grant is equal to 15 percent of the contributions, up to a maximum of $400. If the beneficiary's family income is more than $50,000, but not more than $80,000, the matching grant is equal to 10 percent of the contributions, up to a maximum of $400. If multiple accounts are established for the same beneficiary, the maximum matching grant per year per beneficiary cannot exceed $400.

The account owner's account must have been established at least three (3) years before a qualified withdrawal of matching grant funds may be taken.

Matching grants are dependent upon appropriations from the Minnesota Legislature as approved by the Minnesota Governor. Eligibility requirements for matching grants are subject to change. If the total amount of matching grants exceeds the amount appropriated, matching grant awards will be proportionately reduced.

To qualify for a matching grant, the following requirements must be met:

  • Application: The account owner must apply for a matching grant by May 1 of the year immediately after the calendar year in which contributions were made. Matching Grant Forms will be available in early December.
  • Minimum Contribution: $200 or more must have been contributed to the Account during the calendar year ending on December 31st.
  • Residency: The beneficiary's family must be Minnesota residents:

    - If beneficiary is younger than age 25, the parent(s) or legal guardian(s) must have filed a Minnesota income tax return as a Minnesota resident and claimed the beneficiary as a dependent on their federal income tax return for the calendar year in which contributions were made.

    - If beneficiary is age 25 or older, the beneficiary and spouse, if any, must have filed a Minnesota and a federal income tax return as a Minnesota resident for the calendar year in which contributions were made.
  • Family Income: The family income of the beneficiary must be $80,000 or less for the year in which contributions were made. The beneficiary's family income is different depending on the beneficiary's age.

    - If the beneficiary is younger than age 25, family income is defined as the combined adjusted gross income of the beneficiary's parent(s) or legal guardian(s), as reported on their federal income tax return for the calendar year in which contributions were made. If the beneficiary's parents are divorced, the income of the parent claiming the beneficiary as a dependent on his or her federal income tax return(s) and the income of that parent's spouse, if any, is used to determine family income.

    - If the beneficiary is age 25 or older, family income is the combined adjusted gross income, as reported on their federal income tax return(s), of the beneficiary and his or her spouse, if any, for the calendar year in which contributions were made.

The deadline to apply for the 2007 State Matching Grant was May 1, 2008 and the form is no longer available. The 2008 Matching Grant Application will be available in December 2008.

Complete the Matching Grant Application (PDF, 181KB) and return to:

Minnesota College Savings Plan
PO Box 64028
St. Paul, MN 55164-0028

See the Minnesota College Savings Plan Disclosure Booklet and Participation Agreements (PDF, 773KB) for additional information.



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Check out our FAQ and read the Minnesota College Savings Plan Disclosure Booklet and Participation Agreements (PDF, 773KB).

 

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The tax information contained on the Minnesota College Savings Plan Web site is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding tax penalties that may be imposed on the taxpayer. It was written to support the promotion of the products and services addressed in the Web site. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor.

Consider the investment objectives, risks, charges and expenses before investing in the Minnesota College Savings Plan. Please call toll-free 1(877) 338-4646 for a Disclosure Booklet containing this information. Read it carefully.

Before investing in a 529 plan, you should consider whether the state you or your designated beneficiary reside in or have taxable income in has a 529 plan that offers favorable state income tax or other benefits that are only available if you invest in that state’s 529 plan.

TIAA-CREF Individual & Institutional Services, LLC, distributes Minnesota College Savings Plan. The State of Minnesota, its agencies, TIAA-CREF Tuition Financing, Inc., Teachers Insurance and Annuity Association of America and its affiliates do not insure any account or guarantee its principal or investment return except for TIAA-CREF Life Insurance Company’s guarantee to Minnesota College Savings Plan under the funding agreement for the Guaranteed Option. Account value will fluctuate based upon a number of factors, including general market conditions.

The Minnesota College Savings Plan Web site contains links to other Web sites. Neither Minnesota College Savings Plan nor TIAA-CREF Tuition Financing, Inc. and its affiliates are responsible for the content of those other Web sites. The accuracy of information on those sites cannot be confirmed.

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© 2007 TIAA-CREF Tuition Financing, Inc. TIAA-CREF Individual & Institutional Services, LLC, distributes Minnesota College Savings Plan. 2008 TIAA-CREF Tuition Financing Inc.