Paying for college can be financially daunting. The 529 College Savings Plan is an easy way to help you save money to pay for college and graduate education costs. The plan is an individual investment account that offers tax incentives to save for higher education and training.
- Tax-deferred growth on after-tax contributions
- Tax-Exempt qualified withdrawals
- No income limits
- High contribution limits
- In-state tax benefits for Minnesota
- Low minimum contribution amounts
- Funds may be used at any eligible educational institution – public or private college or university, trade or graduate school and programs, or graduate school
- Funds can be used for qualified expenses such as tuition, course books, fees, room and board, internet, technology, etc.
You can establish an account for a designated beneficiary and determine an ongoing contribution amount. After-tax contributions will then be deposited in the 529 College Savings Plan account regularly through an automatic deduction from your bank account. As long as the money withdrawn from the 529 College Savings Plan account is used for qualified education expenses, you will owe no state or federal taxes on the investment earnings in the 529 College Savings Plan account.
The Minnesota College Savings Plan is managed by TIAA. You can open an account by check, through the automatic contribution plan, by electronic funds transfer (including electronic purchase option), or through a transfer of funds between accounts or a rollover. The minimum initial contribution is $25, with at least $25 to each investment option chosen. Visit the Minnesota 529 Plan website or call 1-877-338-4646 for more information.