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Save for higher education with the Minnesota College Savings Plan

Tax time is the perfect time to start planning for your child’s financial future
Mar 18, 2019

St. Paul, Minn. – With the April tax deadline almost here, now’s a great time to review your finances and position yourself to meet future goals like saving for the rising cost of higher education or reducing your dependence on student loans.

One of the best ways to save for college is by investing in a 529 plan such as the Minnesota College Savings Plan. Sallie Mae reports that six out of ten parents are already saving for college, and more savings reside in 529 plans than any other investment option.

With the Minnesota College Savings Plan, investment earnings grow tax-deferred and are tax-free at both the state and federal level when used to pay for qualified expenses.

Qualified expenses include tuition, room and board expenses, books, supplies, computers and much more at most accredited educational institutions across the country and even abroad.

Tax Benefits Accelerate Savings

Through the Minnesota College Savings Plan, account holders have an opportunity to grow their savings, while also enjoying significant tax benefits. Minnesota residents who file taxes jointly, regardless of their relationship to a child, can reduce their state taxable income by up to $3,000 per beneficiary, while single filers can take a $1,500 tax deduction for the 2019 tax year.

“Our mission is to help ease the burden of saving for higher education,” said Jim Mandler, senior marketing manager for the Minnesota College Savings Plan. “To achieve that, we work with the state of Minnesota to provide the best available resources, including tax deductions. We are proud to offer this benefit to our account holders and hope to support the next generation of students.”

Invest in Employee Perks and Reap the Benefits

When companies find themselves in a competition to hire and ultimately retain top talent, it helps to differentiate. Organizations that incorporate the Minnesota College Savings Plan into their benefits package not only stand out from similar businesses, but also promote smart saving habits.

Once companies offer the Minnesota College Savings Plan as a benefit, employees can then open an account or use an existing one to add automatic payroll deposit. Check with your human resources representative to see if your company is participating in this program. With low, budget-friendly minimums, it’s easier than ever for employees to start planning for higher education expenses.

Why Choose the Minnesota College Savings Plan

In addition to its ease of use, industry-leading sources have recognized the Minnesota College Savings Plan as one of the top programs in the U.S. Consumer finance expert Clark Howard recently commended the plan for its performance record and affordability in a study of the best 529 plans.

It takes less than 15 minutes and just $25 to open an account on the Minnesota College Savings Plan website, which features a wide variety of free resources and instructional tools.

For more information about the Minnesota College Savings Plan, its available tax benefits, or the MN 529 at Work program, please visit mnsaves.org or call 1-877-338-4646.

About the Minnesota College Savings Plan

The Minnesota College Savings Plan, Minnesota’s official 529 college savings plan, makes it easier for families to save for higher education expenses. It takes just $25 and 15 minutes to open a Minnesota College Savings Plan account and funds saved can be used at colleges, technical schools and grad schools nationwide. In addition to tuition, funds may be used for certain room and board expenses, books, supplies or other qualified expenses.

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To learn more about the Minnesota College Savings Plan, its investment objectives, tax benefits, risks, and costs please see the Disclosure Booklet at mnsaves.org. Read it carefully. Investments in the Plan are neither insured nor guaranteed and there is the risk of investment loss. Check with your home state to learn if it offers tax or other benefits such as financial aid, scholarship funds or protection from creditors only available for investing in its own 529 plan. Consult your legal or tax professional for tax advice, including the impact of the new federal tax changes. If the funds aren't used for qualified higher education expenses, a 10% penalty tax on earnings (as well as federal and state income taxes) may apply.

TIAA-CREF Individual & Institutional Services, LLC, Member FINRA and SIPC, distributor and underwriter for the Minnesota College Savings Plan.

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