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 six 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 guaranteed rate of return
4. a balanced option
5. a money market option, and
6. 100% fixed income option.

Account owners are assessed an annual plan manager fee. The total annual asset-based fee for the Managed Allocation Option is 0.5125%. Fees for the 100% Equity Option, the Balanced Option, the 100% Fixed-Income Option and the Money Market Option have a total annual asset-based fee ranging from 0.5125% to 0.6125%, depending on the investment option. There is no annual asset-based fee for the Guaranteed Option. There are no commissions or annual administrative fees paid on accounts in the Plan.

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 American Opportunity and 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.

Matching Grant:

Minnesota College Savings Plan account owners may apply for a state of Minnesota matching grant on behalf of their account beneficiary. Account owners do not need to be the beneficiary’s parent(s) or legal guardians. To qualify for a matching grant, the account owner must have made a minimum $200 account contribution by December 31 and have made an annual application by May 1 of the year immediately after the calendar year in which contributions were made. In addition, the account beneficiary must meet Minnesota residency requirements and have a family income less than $80,000. Matching grant details are available at www.mnsaves.org.