As the cost of college increases, Missouri families have a tool to help prepare them for the day when their son or daughter chooses the next step following high school graduation. The best part is, no one has to take on this major challenge on their own.
Missouri’s 529 College Savings Plan, often called the Missouri MOST Plan, refers to section 529 of the IRS tax code. It is an investment account that is specifically used for saving money to help pay for college. Better still, it is money that can be invested tax-free, without the usual penalties most investment accounts utilize once the money is withdrawn. There are also state tax benefits for opening an account.
Just about anybody can open a 529 account, whether it is the parent, grandparent or any other relative of someone who plans to go to college. You can also open an account for yourself. The money invested in these accounts can be used for tuition, books, supplies, fees and some room and board. The funds can also go toward paying for vocational or technical schools or two-year colleges as well.
These accounts are a great way to invest in your future. It is an opportunity to put away money not only for the right reasons, but to also take advantage of tax benefits from not only the state, but the federal government. I am glad to see the 529 College Savings Plan still going strong and making a positive difference in people’s lives through our state.
As always, please feel free to call, email or write with your ideas or concerns. My Capitol office number is (573) 751-1415, my email is firstname.lastname@example.org and my mailing address is Room 332, State Capitol Building, Jefferson City, MO 65101.
Dan Hegeman is the 12th District State Senator.