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Save More While Saving for College with the Minnesota 529 College Savings Plan
St. Paul, Minn. – September is National College Savings Month, which serves as a reminder about the importance of saving for higher education. While going back to school is different for many families this year, investing in their child’s future should remain a priority. Now is the ideal time to review your college savings strategy or establish a savings habit with the Minnesota 529 College Savings Plan (MNSAVES).
“Investing in your child’s future can feel like a daunting task, especially during uncertain times, but even small, regular contributions add up,” said Jim Mandler, senior marketing manager for the Minnesota 529 College Savings Plan. “We’re here to be your savings partner, and now is the perfect time to start building a strong financial foundation for your child’s future.”
Here are three reasons to start saving with MNSAVES today:
- Tax-advantaged 529 plan. In addition to federal and state tax free growth potential, with MNSAVES, Minnesota residents, regardless of their relationship to a child, can claim a state income tax deduction of up to $3,000 for joint filers and $1,500 for all other filers. Limitations apply.*
- Low fees and easy account set up. Low fees mean more money to invest! MNSAVES fees are about a fourth of the national average.1 It takes only 15 minutes and just $25 to open an account on the Minnesota 529 College Savings Plan website.
- Flexibility and hassle-free contributions. Account owners can contribute whatever dollar amount is feasible ($25 minimum), and when it comes time to pay for college, funds can be used to pay for college, universities, technical colleges, professional schools, graduate schools, as well as certain continuing education courses – nationwide and at many schools abroad.
For more information about the Minnesota 529 College Savings Plan, including live webinars with college savings specialists, available tax benefits and the impact of student loans, please visit www.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.
*To learn more about the Minnesota 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 College Savings Plan.
1Strategic Insight 529 College Savings Fee Analysis Q2 2020. Minnesota College Savings Plan’s average annual asset-based fees are 0.15% for all portfolios compared to 0.58% for all 529 plans.