Minnesota residents receive numerous state plan benefits.
Learn about state tax benefits ↓Minnesota residents receive numerous state plan benefits.
Learn about state tax benefits ↓Featured 529 plans for Minnesota residents:
Minnesota taxpayers may claim either a tax deduction or a tax credit depending on their income, for contributions to ANY state's 529 plan. A $1,500 tax deduction ($3,000 for a married couple filing jointly) can be claimed against Minnesota income tax. Alternatively, a tax credit equal to 50% of the contributions to accounts, reduced by any withdrawals, may be claimed with a maximum credit amount of up to $500, subject to a phase-out schedule, depending on the taxpayer's federal adjusted gross income. The income thresholds used to determine the maximum credit amount are adjusted annually for inflation.
Minnesota is a tax parity state, enabling tax benefits for contributions to non-state 529 plans. See the best 529 plans →
Minnesota offers the Minnesota College Savings Plan to residents of any state. This direct-sold 529 plan offers numerous investment options from program manager TIAA.
"Do-it-yourself" type plans in which the saver enrolls and sets up the initial investment. Fortunately most 529 plans make this simple! You'll pay no sales charges beyond fund and administrative fees.
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529 ABLE accounts let Americans with disabilities save tax-deferred for education and other expenses without impacting eligibility for public benefits.
ABLE Plan
The Minnesota ABLE Plan is offered through the National ABLE Alliance. The plan was established under the state's ABLE legislation to encourage and assist individuals and families in saving private funds for the purpose of supporting individuals with disabilities to maintain health, independence, and quality of life, and to provide secure funding for disability-related expenses on behalf of designated beneficiaries with disabilities that will supplement, but not supplant, benefits provided through private insurance, the Medicaid program under title XIX of the Social Security Act, the Supplemental Security Income program under title XVI of the Social Security Act, the beneficiary's employment, and other sources.
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Saving For College is an unbiased, independent resource for parents and financial professionals, providing them with information and tools to understand the benefits of 529 college savings plans and how to meet the challenge of increasing college costs.