Give the Gift of Education this Holiday Season with MNSAVES
Minnesota families can contribute to or open an account before
December 31 to qualify for a 2023 tax deduction
published November 14, 2023
St. Paul, Minn. (November 14, 2023) – The holiday season is in full swing, and many are thinking about what gifts to give their children, grandchildren, or other loved ones.
This year, Minnesota families can skip out on the stress of getting expensive tech or must-have toys. With MNSAVES, Minnesota’s 529 College Savings Plan, they can give something lasting, memorable, and valuable - the gift of higher education.
“Gifting with MNSAVES is something that can last a lifetime and is something your child will remember,” said Jim Mandler, senior marketing manager for MNSAVES. “And not only is it a lasting gift, but a quick and easy one, too, that offers some nice tax benefits.”
MNSAVES is a tax-advantaged 529 college savings plan, meaning that money you invest with the program could help you on state income taxes. For 2023, Minnesota taxpayers can reduce their state taxable income up to $3,000 if married filing jointly. Additionally, any earnings are 100 percent free from federal and Minnesota state taxes when used for qualified education expenses.
Families gifting larger amounts to a MNSAVES account have an opportunity to support a loved one’s college education and contribute to legacy and estate planning. There’s no federal gift tax on contributions you make up to $17,000 per year if you’re a single filer, or $34,000 if you’re filing jointly. More details can be found on MNSAVES’ gifting page.
The tax deduction deadline is Sunday, December 31, 2023. It takes only 15 minutes and just $25 to open an account on the MNSAVES website.
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. Funds saved can be used at eligible colleges and universities, community or technical colleges 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 College Savings Plan, its investment objectives, risks, charges and expenses 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 for investing in its own 529 plan. If the funds aren't used for qualified higher education expenses, a federal 10% penalty tax on earnings (as well as federal and state income taxes) may apply. Consult your legal or tax professional for tax advice. TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, distributor and underwriter for the Minnesota College Savings Plan.
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