Still looking for the perfect gift? Consider the gift of education. |
Either way, it’s December already and Christmas is just a few days away.
If you are still looking for gift ideas for one of the children in your life, don’t forget the education gift and contribute to their MOST 529 Education account. Sure, it’s not a Red Ryder, rifle-action, 200-shot air rifle with a compass in stock and that thing that tells the time, but studies show kids with 529 counts are more likely to pursue higher education.
Named after the section of the tax code that governs them, 529 plans are tax-advantaged savings and investment accounts for educational expenses. As state treasurer, I oversee MOST, the Missouri 529 Education Plan.
The money in MOST 529 accounts increases tax-deferred (and can be withdrawn tax-free when used for qualifying expenses). Plus, Missouri offers generous income tax deductions for contributions, up to $ 16,000 if you’re married and filing jointly. As a contributor, you are entitled to the deduction.
The versatile skilled spending makes the plan a valuable tool for Missourians regardless of their education goal. These include K-12 tuition, trades, colleges, apprenticeships and tuition, and graduate education expenses (such as books, computers, and some room and board. ). In addition, up to $ 10,000 can be used for student loan repayment.
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If you’re a parent, UGift makes it easier to encourage the gift-giving people in your life to forgo traditional toys, clothes, or other gifts that your child will pass out instead of something that can make a difference. lasting impression. Ugift is a simple, free service that allows family and friends to make contributions directly into your child’s MOST 529 account. You can even get the READYSAVE â¢ 529 app to share your code with just a few clicks by downloading it from Google Play or the App Store.
Similar to MOST 529, MO ABLE accounts offer similar financial benefits when saving for people with disabilities. Launched in 2017, MO ABLE saves people with disabilities and their families up to $ 15,000 per year, tax-free, without losing federal benefits like Medicaid and SSI (up to $ 100,000). Money in MO ABLE accounts can be used for a variety of expenses, including accommodation, food, transportation, medical bills, and education.
In Missouri, MOST 529 and MO ABLE participants saved more than $ 4 billion going forward. We are working hard to create strong and profitable MOST 529 and MO ABLE plans for Missourians. In October, MOST 529 was once again ranked among the best plans in the country by investment research firm Morningstar.
This holiday season, while you dream of a white Christmas, add some green to a child’s education account.
Scott Fitzpatrick is the 47th Treasurer of the State of Missouri. He can be contacted at [email protected]