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Starting in 2024, the SECURE 2.0 Act allows savers to roll unused 529 funds into the beneficiarys Roth IRA without a tax penalty, says Lawrence Sprung, author of Financial Planning Made Personal and founder of Mitlin Financial in Hauppauge, New York.
A forward-thinking approach implemented by a dedicated 529 team supports a Morningstar Medalist Rating of Silver for the Minnesota College Savings Plan. The sharp state board of investments and low cost add to this plans appeal. The straightforward and well-diversified portfolios continue to make this plan compelling.
Federal tax laws passed in 2017, 2019, 2020, and 2022 added several new tax benefits to 529 plans. 529 plans can now be used for K12 expenses, not just for college and other postsecondary education. 529 plans can also be used to pay off a portion of student loan debt as well as for vocational school expenses.
MNSAVES is among the lowest cost 529 plans in the country, which can mean more money for college.
The beneficiarys family includes the beneficiarys spouse and the following other relatives of the beneficiary: Son, daughter, stepchild, foster child, adopted child, or a descendant of any of them. Brother, sister, stepbrother, or stepsister. Father or mother or ancestor of either. Stepfather or stepmother.

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Investment income on 529 accounts is exempt from both federal and Minnesota income taxes, if the income is used for qualifying higher education expenses.
Use coupon code 529DAY23 during online enrollment to waive your $25 enrollment fee. Coupon code is valid 05/22/2023 to 06/02/2023. Open a new MESP account between 5/22/23 and 5/31/23 and receive up to a $100 bonus. Terms and conditions apply.
Open an account at mnsaves.org/newborn using promo code SmartStart23. Make an initial deposit of $50 and add a recurring contribution or $25 or more for at least six months. Receive your $50 bonus.

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