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Unwrap college savings with MNSAVES this holiday season

Contribute or open an account before December 31 to qualify for a 2019 tax deduction
Dec 04, 2019

ST. PAUL, Minn. – For shoppers looking to give a meaningful present this holiday season, the Minnesota 529 College Savings Plan (MNSAVES) makes it easy to give the gift of higher education. No matter if you’re ahead of the game or just searching for last-minute options, MNSAVES has mail-in contributions or Ugift, a secure online gifting platform at mnsaves.org.

“Whether you’re planning for college, technical institutes or other higher education venues, MNSAVES is here to help Minnesota families this holiday season,” said Jim Mandler, senior marketing manager, MNSAVES. “With convenient gifting options, MNSAVES takes the hassle out of holiday shopping, lets you lend a hand in funding a future education and offers year-end tax benefits.”

A gift that gives back

Graduating from college is a dream for many students. In-state relatives and friends who gift with MNSAVES not only help turn that dream into a reality, but they can also receive certain tax breaks.

For example, Minnesota residents, regardless of their relationship to an account holder, could lower their state taxable income by thousands every year. Joint filers are eligible for a deduction of up to $3,000, while single filers can apply for $1,500 in deductions per beneficiary, per year.

Lower fees means more opportunities to save

In addition to the year-end tax advantages, MNSAVES account owners can also benefit from the plan’s recent transition to a new administrative platform, which provides lower fees, and enhanced investment choices, among other changes.

As part of this process, average plan fees decreased to 0.15 percent, more than three times lower than the national average for all 529 plans*. With this fee reduction, MNSAVES account owners could potentially save a combined total of almost $1.2 million annually.

Invest with one of the best

In a recent study of 529 plans across the country, Morningstar, Inc., a leading investment research firm, awarded MNSAVES with a “Silver” rating, making the program one of only 13 plans to receive such an honor. Morningstar also commended MNSAVES as one of the most improved plans in the nation for its lower fees, high-quality investment strategies and strong oversight from the State of Minnesota**.

For more information on MNSAVES, including all of its new features and available gifting options, please visit mnsaves.org or call 1-877-338-4646.

About the Minnesota 529 College Savings Plan
The Minnesota 529 College Savings Plan (MNSAVES), 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 MNSAVES account and funds saved can be used at colleges, technical schools and graduate schools nationwide and many abroad. In addition to tuition, funds may be used for certain room and board expenses, books, supplies or other qualified expenses.

To learn more about the Minnesota 529 College Savings Plan, its investment objectives, tax benefits, risks, and costs please see the Plan Description 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. 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, distributor and underwriter for the Minnesota 529 College Savings Plan.

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*Strategic Insights 3rd Quarter 2019 529 Fee Analysis.

**In an annual review (10/22/2019) of the largest 529 college savings plans (62 total), Morningstar identified 30 plans that rose above their typical peers, awarding those plans Gold, Silver, and Bronze Morningstar Analyst Ratings for 2019. These forward-looking, qualitative ratings signal Morningstar’s conviction in the plans’ abilities to outperform their relevant benchmark and peer groups on a risk-adjusted basis over the long term. Morningstar evaluates college savings plans based on five key pillar — Process, Performance, People, Parent, and Price — ©2019 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. A Morningstar Analyst Rating for a 529 college savings plan is not a credit or risk rating. Analyst ratings are subjective in nature and should not be used as the sole basis for investment decisions.

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