General InformationDownload PDF Report
The Massachusetts U.Plan Prepaid Tuition Program, not a true 529 plan, issues Massachusetts general obligation bonds (federal and MA state tax-free) which will be accepted at participating Massachusetts institutions in payment of tuition.
- Program typePrepaid contract
- Enrollment periodTypically May and June each year.
- State agencyMassachusetts Educational Financing Authority (MEFA)
- Tax deduction
- Program ManagerMassachusetts Educational Financing Authority (MEFA)
Ratings & Rankings
Our overall rating for non-residents
This is an excellent program with many benefits for the participant and positive investment attributes. If it has any significant weaknesses then it also has some particularly good things to recommend it.
State residency requirements:None
Who can be a participant/owner in the program?Individuals
Significant time or age restrictions imposed by the program:A tuition certificate must be redeemed within 6 years after its maturity date.
Contract prices:The minimum contribution amount is $300 for one Tuition Certificate per maturity year.
Available tuition packages:Massachusetts general obligation bonds that may be redeemed for a pre-determined percentage of tuition and fees at a participating Massachusetts institution.
Benefits for beneficiary attending private or out-of-state institution:Participating public and private institutions in MA are covered by the U.Plan. Use at non-participating and out-of-state institutions provides a return of principal plus interest compounded annually equal to the Consumer Price Index.
Contract payment options:Lump sum only.
Are program benefits backed by the full faith and credit of the state?Yes
Are program benefits collateralized or guaranteed in any other way?No
Fees & Expenses
Enrollment or application fee:None.
Taxes and other Benefits
- Tax deduction for single filers$1,000/yr
- Tax deduction for joint filers$2,000/yr
Married filing jointly residents contributing $100/month can expect an additional $0 a year in tax savings.