It’s never too early or too late to begin saving for your child’s college or trade school expenses. Whether your child just started Kindergarten or whether he or she will begin driving this year, the Missouri MOST 529 College Savings Plan can help you prepare for the future.
The 529 savings plans are special investment accounts designed to help families save for higher education at eligible two- to four-year colleges, postgraduate programs, or secondary trade and vocational schools. Nearly all accredited colleges, universities, and vocational/trades schools in the United States are 529-eligible. Funds cover qualified expenses like tuition, books, and certain room and board fees.
Any U.S. citizen can open a MOST 529 account, anyone can contribute to the fund, and there’s no enrollment fee. Accounts can be managed online, and contributions can be as little as $25 each. The maximum total contribution to a MOST 529 plan is $325,000.
529 plans are tax-deferred, and as long as they’re used for qualified higher-education expenses, they’re exempt from federal income tax. Missourians can deduct $8,000 ($16,000 for married couples filing jointly) in annual contributions from their Missouri taxable income.
Missouri even offers a MOST 529 Matching Grant Program that allows families with a 529 beneficiary who’s 13 or younger to qualify for a matching grant up to $500. Account holders need to submit a new Matching Grant Program application every year.
Many Missouri businesses make MOST 529 plan contributions available through payroll deduction. Ask your human resource or payroll representative for more information. If he or she isn’t familiar with the MOST 529 program, a MOST 529 representative can be requested to speak with him or her using this form.
Navigating your son or daughter’s education is a big job, and we’re here to help. Follow our Facebook Page, bookmark the Missouri Parent Blog, or sign up for our email updates for a regular stream of practical tips and information.
Posted on Tue, September 10, 2013
by MOParent filed under