Minnesota College Savings Plan

The Minnesota College Savings Plan is a 529 Qualified Tuition Program. Earnings accumulate tax-free, and are exempt from federal and state taxes if used for qualified higher education expenses.

For additional information on the Minnesota College Savings Plan or to open an account, visit www.mnsaves.org or call (877) 338-4646. The Minnesota College Savings Plan is one of many 529 plans offered throughout the country.

Investment Options:

Account owners have three investment options:

1. a managed allocation option in which savings are invested more conservatively as the account beneficiary nears college age
2. an all-equities option
3. a guaranteed option with a minimum rate of three percent guaranteed.

Account owners are assessed an annual plan manager fee for investments in the managed allocation option and the all-equity option. The fee is 0.65 percent (less than one percent) of the plan assets.

Qualified Education Expenses:

Qualified expenses include tuition, required fees, room and board, books, supplies and equipment for students enrolled at least half time.

Eligibility Requirements:

Any individual with a valid social security number or federal tax identification number who is a U.S. citizen or resident alien can open an account and contribute to the plan on behalf of any beneficiary. The beneficiary must have a valid social security number and be a U.S. citizen or resident alien.

Limitations:

The maximum contribution is $235,000. Other limitations apply. You may be eligible to claim either the Hope or Lifetime Learning Tax Credits. Contributions can be made to a Coverdell ESA and the Minnesota College Savings Plan in the same year for the same beneficiary.