Minnesota 529 College Savings Plan
The Minnesota 529 Plan is an easy way to help you save money to pay for your children’s
or grandchildren’s college and graduate education costs. "529 plans" are individual investment accounts that offer tax incentives to save for higher education and training.
You can establish an account for a designated beneficiary and determine an ongoing contribution amount, and after-tax contributions will then be deposited in the 529 plan account regularly through an automatic deduction from your bank account. As long as the money withdrawn from the 529 plan account is used for qualified education expenses, you will owe no state or federal taxes on the investment earnings in the 529 plan account.
Other advantages include:
- Matching grant: The State of Minnesota will provide a matching grant to eligible Minnesota resident families contributing at least $200 to the plan per calendar year.
- Choice of schools: Whether your child decides to go to a private or public college or university, trade or graduate school, in Minnesota or another state, funds in your 529 plan account may be used at any eligible educational institution.
- Qualified expenses: Your savings can be used for tuition as well as related qualified higher education expenses such as course books, fees, certain room and board expenses, and supplies and equipment required for enrollment or attendance.
- Anyone can contribute: Parents, grandparents, relatives and friends at any income level may open an account and contribute.
- You are in control: You maintain control of the funds in the account. Your child or beneficiary cannot spend the money on a non-qualified expense.
- Low minimum contribution: An account may be opened with a minimum of $25.