submitted by vachta@augsburg.edu
MNSAVES makes it easier to save for higher education with triple tax benefits. Not only are Minnesota taxpayers eligible for a state income tax deduction, any earnings in a MNSAVES account grow tax-deferred, and withdrawals are 100% tax free when used for qualified higher education expenses. It’s easy to get started, and your account can go with you if you change jobs.
Join us for a 30-minute webinar on MNSaves 529 accounts:
Monday, April 13
12:30 PM
Register at https://tiaa.zoom.us/webinar/register/WN_6017lwn_RkGGQOqk1ABbjQ
Triple Tax Benefits
– State tax deduction of up to $3,000 for married joint filers ($1,500 for those filing single)
-Tax-deferred growth on any earnings
-Tax-free withdrawals for qualified higher education expenses including tuition, fees, room and board, books, and more
Expenses Beyond the Tuition Benefit
While Augsburg provides generous tuition benefits, maintaining a 529 plan is a strategic financial move for several reasons:
– Covers Non-Tuition Expenses: A 529 plan allows you to pay for room and board, books, required technology, and lab fees using tax-free distributions.
– Tax Efficiency for Graduate Studies: Employer-provided tuition assistance over $5,250 for Augsburg graduate programs is usually taxable income. 529 funds can help cover these tax liabilities or additional costs not met by the benefit.
– Educational Flexibility: A 529 provides a safety net if your student decides to attend a school outside the tuition exchange network or if your employment status changes before their graduation.
– Minnesota Tax Benefits: Contributions to a 529 plan qualify for a Minnesota state income tax deduction or credit, and any investment growth remains entirely tax-free when used for qualified education costs.