The Mississippi affordable college savings program or MACS was developed to help parents save for their children’s higher education costs. This program helps parents achieve their financial goals with a step-by-step plan constructed for the purpose of obtaining a higher education. If you have children or have a loved one that you believe will be attending a state university you will want to consider the MACS 529 college savings plan.
Investing in your child’s education can be one of the best investments that you make in your entire life. There are many benefits that can help you save money faster that are associated with the Mississippi savings plan. Here are some of the many benefits that you can use to save money faster.
Mississippi 529 College Savings Plan Tax Benefits
There are many different tax benefits that are associated with the 529 college savings plan. All earnings that are used to pay for qualified higher education expenses are Mississippi income tax-free. They are also federal income tax free. This allows you to let your money compound in an investment portfolio without having to pay tax
The state of Mississippi also offers an income tax deduction on MACS contributions. The amount contributed by a Mississippi taxpayer to a MACS 529 account during a tax year is deductible from Mississippi adjusted gross income in an amount that does not exceed $10,000 for a single return. If you are married and decide to file jointly you can be eligible for a $20,000 deduction.
These tax benefits are strictly for Mississippi taxpayers. Many other states do not offer these deductions. As a Mississippi citizen you have the advantage of saving thousands of dollars a year with these incredible tax benefits.
Cost of MACS 529 College Savings Plan
With the Mississippi affordable college savings program there are no start up charges. There are also no maintenance fees or sales charges involved with an account. The only fees that you will have to pay our asset-based management fees which normally average out to around .87% of the total amount invested. These minimal fees make savings very easy. Unlike other savings accounts your fees are reduced as part of the college education program. The Mississippi affordable college savings program can be started with as little as $50. Monthly contributions should be made to keep your portfolio headed in the right direction.
Total Control of your Money
If you decide to open a 529 college savings plan you need to know that you are in total control of your money. You decide which investment portfolio is right for you and your situation. All the decisions that you make can be changed as long as you are the account holder. You can change the beneficiary of the account on a year-to-year basis. If you decide that you need the money for another purpose you can also withdraw the money. If you withdraw the money for personal reasons that are not associated with college tuition costs you have to pay tax on that money.
The Mississippi 529 college savings plans have one of the most flexible options that parents have. The many benefits can be used to multiply your portfolios results. Take advantage of the many tax benefits that are offered through this outstanding program.