The dream of higher education is fading away when you look at the reality of rising tuition costs. The Minnesota 529 college savings plans gives parents a way to start saving today to prepare for their children’s college tuition costs. The 529 college savings plan was developed to offer parents a clear-cut way to make college savings affordable and easy. There are many different benefits to the Minnesota 529 college savings plan. Many of these benefits can help you make extra payments towards your college savings account. These benefits give parents a way to start saving today to prepare for a child’s tomorrow.
Minnesota 529 College Savings Plan Tax Benefits
The Minnesota office of higher education has developed these outstanding savings plans and has included many benefits for Minnesota taxpayers. The earnings in these plans growth federal and Minnesota income tax deferred. When you make contributions to the 529 college savings plan your earnings have the opportunity to grow tax-free. This means that you can reinvest the money that you save from the many tax benefits that you receive.
Anyone Can Open an Account
The process for opening a Minnesota 529 college savings account is quite easy. Accounts can be opened with as little as $25 and minimal monthly deposits. Accounts can be opened by parents as well as relatives or grandparents that want to be part of the savings process. Friends and family can also make distributions into these accounts as gifts for special occasions. This can be a great way to be part of your loved ones future. These meaningful gifts go along way. To open an account all you have to do is fill out the online application and then make your first initial deposit. Once the process starts you have to choose which savings plan is right for you and your situation.
College Savings Plan Investment Strategy
Once you have opened your 529 college savings plan you want to find the best investment portfolio for your situation. The Minnesota office of higher education has selected TIAA-CREF tuition financing as their investment company of choice.
TIAA-CREF offers portfolio counseling with a simple phone call. TIAA-CREF offers a full-service financial help for their customers. They are dedicated to helping parents with their academic savings needs. They will discuss with you which investment strategy is right for you based on your child’s current age and your financial goals. The faster you start saving the better off you will be.
What Schools are eligible with the Minnesota 529 College Savings Plan?
The beneficiary of the 529 plan can decide to go to a private or public college or university. This includes in-state universities or out-of-state schools. Funds in the account can be used to any eligible higher educational institution in the United States. The money that has been saved in the account can be used toward tuition as well as other related college expenses. These expenses include books, supplies, and room and board costs.
If you are a Minnesota citizen you’ll want to take advantage of this outstanding college program. This program was created by the state of Minnesota to make it possible for parents to help their students attend a university. Investing in your child’s education is an investment in their future.