Preparing for the costs of college can be a challenge for any parent. If you understand some of the basic investment principles you can take advantage of the outstanding college savings plan developed by the state of Missouri. The MOST 529 College saving plan lets parents saves money for their children’s future tuition costs.
The MOST plan offers many different benefits that can be very helpful for future tuition savings. These benefits can make saving for tuition costs seem easy. Here are some of the many features that are offered with the MOST 529 college savings plan.
Most 529 College Savings Plan Tax Benefits
Missouri’s 529 college savings plan offers numerous tax incentives that make it attractive to save money for college tuition costs. One of the major advantages to this savings program is that your assets grow tax-deferred. All withdrawals are exempt from federal income tax as long as they are for qualified higher education expenses very Missouri taxpayers yet an added advantage.
Account owners may deduct up to $8000 in contributions to all accounts in any taxable year. If you are married and decide the file jointly you may deduct up to $16,000 in the aggregate year. These outstanding tax benefits are only for Missouri State taxpayers.
Gift taxes are also great incentives. Single contributions can be made for up to $65,000 within a five year period of time. This benefit can be used by grandparents as well as other relatives that would like to make contributions towards their loved ones savings account.
Age-Based Savings Options with Missouri 529 College Savings Plans
One of the best ways to save money is through an age-based portfolio savings program. This will help you put your college savings on autopilot. You can select from many different investment options. Depending on your child’s current age will make a huge difference on how you create your investment strategy.
Conservative, aggressive, or moderate investment strategies exist for all of the accounts that are offered. The older your child gets the less risk you will want to take. This means that you’ll want to lower the amount of money that you have invested in stocks and start investing in money market funds. The Vanguard group was chosen by the state of Missouri to handle their 529 college savings plans.
Vanguard offers 24-hour customer service to help you decide which investment strategy is right for you. Take advantage of the help that is offered to get you to your savings goals.
Getting Started with a MOST 529 Account
There are three different ways to enroll in the Missouri 529 college savings plan. You could open an account online which normally takes around 10 min. to complete. You can also download on enrollment kit and print out the application form. If you do not have a computer you can request enrollment kit by mail. You will be sent all the information that you need to immediately start this savings process.
Saving for your child’s education can be one of the most intelligent decisions that you make in your lifetime. With tuition costs on the rise saving early has never been more important. Take advantage of the MOST 529 college savings plan and its many benefits.