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Minnesota College Savings Plan

4 / 5

Our rating

Good MN resident benefits

MN resident benefits

Minnesota College Savings Plan is a TIAA-managed 529 savings program features an Enrollment Year Investment Option, seven Multi-fund options and three Single fund options and a guaranteed option.

Minnesota College Savings PlanHigh Honors

KEY METRICS

OVERVIEW

Program type

Savings

Inception

2001

State agency

Minnesota Office of Higher Education and the State Board of Investment

Tax deduction

For single filers: $1,500/yr per beneficiary

For joint filers: $3,000/yr per beneficiary

Program manager

TIAA-CREF Tuition Financing, Inc.

Program distributor

TIAA-CREF Individual & Institutional Services, LLC

Manager contract term

MORE INFORMATION

Eligibility

State residency requirements:

None

Who can be a participant/owner in the program?

U.S. citizens and resident aliens, UGMA/UTMA custodians, and legal entities.

Significant time or age restrictions imposed by the program:

None

Contributions

Maximum contributions:

Accepts contributions until all account balances in Minnesota's 529 plan for the same beneficiary reach $425,000.

Minimum contributions:

$25 per investment option, or $15 per investment option via payroll deduction.

Does the program offer an e-gifting platform for receiving gift contributions?

This plan offers a robust gifting platform that allows gift-givers to save their own profile for recurring or future contributions.

SPONSORED

Other great plans to consider

You are not limited to your own state's 529 plan, so compare the plan and tax benefits offered by your state to other options. Here are some plans that are available to residents of any state and have earned awards in our 529 Plan Ratings:

Investment Options

Investors in Minnesota College Savings Plan can select from the following investment options. Click on a portfolio name for more information.

The Enrollment Year Investment Option contains 10 portfolios of underlying mutual funds. The asset allocation of the money invested in these investment options is automatically adjusted over time to become more conservative as the number of years to enrollment for the student decreases.
PortfolioE.R. % Equity1yr performance
2036/2037 Enrollment Option0.14%72%7.01%
2034/2035 Enrollment Option0.14%66.5%7%
2032/2033 Enrollment Option0.14%57.5%6.73%
2030/2031 Enrollment Option0.14%47%6.3%
2028/2029 Enrollment Option0.14%35.4%5.87%
2026/2027 Enrollment Option0.16%23.4%4.97%
In School Enrollment Option0.16%13.5%4.3%
2038/2039 Enrollment Option0.14%76%7.01%
2040/2041 Enrollment Option0.14%79%7.14%
2042 / 2043 Enrollment Option0.14%N/AN/A

Age-based/Enrollment Year investment options:

The Enrollment Year Investment Option contains 10 portfolios of underlying mutual funds. The asset allocation of the money invested in these investment options is automatically adjusted over time to become more conservative as the number of years to enrollment for the student decreases.

Static investment options:

Select among 11 options: 7 multi-fund portfolios, three single fund portfolios including the Social Choice Equity Option, and the Principal Plus Interest Option.

Underlying investments:

TIAA-CREF institutional mutual funds; Vanguard and DFA funds. The Principal Plus Interest Option is invested in a funding agreement with TIAA-CREF Life Insurance Company that guarantees principal and a minimum rate of interest (actual rate is declared annually).

Underlying fund allocations:

Portfolio Fees & Performance Lookup

Fees & Expenses

Enrollment or application fee:

None.

Account maintenance fee:

None.

Program management fees:

0.10% manager fee plus 0.0025% state fee. Manager fee and state fee do not apply to the Principal Plus Interest Option.

Expenses of the underlying investments:

Ranges from 0.02% to 0.06% in the Enrollment Year Investment Option and 0.03% to 0.18% in the Multi-fund and Single Fund Investment Options; none for the Principal Plus Interest Option.

Total asset-based expense ratio:

0.12% to 0.28%. None for the Principal Plus Interest Option.

Taxes and other Benefits

Tax deduction for single filers:

$1,500/yr per beneficiary

Tax deduction for joint filers:

$3,000/yr per beneficiary

Program match on contributions:

Minnesota no longer offers a matching grant. For years prior to 2011, a 15% or 10% matching grant of up to $400 per year was available to Minnesota residents, subject to income limitations.

State tax deduction or credit for contributions:

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.

State tax recapture provisions:

Qualified Withdrawals and outgoing rollovers that are free from federal income tax are also free from Minnesota income tax, with the exception of withdrawals used for elementary and secondary school tuition, which are subject to Minnesota income tax.

State definition of qualified expenses

The state's definition of qualified education expenses currently includes expenses for attendance at an institution of higher education or an apprenticeship program, as defined by the Internal Revenue Code and its regulations addressing qualified state tuition programs. This does not include tuition for elementary or secondary education, or education loan payments. Distributions from a 529 account directly to a Roth IRA are not considered a qualified expense for state income tax purposes.

State tax treatment of qualified distributions:

Qualified distributions from Minnesota and non-Minnesota 529 plans are exempt.

State tax treatment of rollovers:

Minnesota follows federal tax-free treatment.

Does the sponsoring state exclude the value of an account for state financial aid purposes?

No

Does participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?

No

Is there a rewards program or outside scholarship program that works with this program?

Yes, the Upromise Rewards program can be linked to any 529 college savings plan. Upromise Rewards is free to join and offers members cash back for college.

Statutory protection of an account from creditors:

Distributions & Terminations

To whom are distributions made payable:

Eligible educational institution and/or the beneficiary, or account owner, as directed by the account owner.

Account Changes

Policy regarding participant/owner changes:

Accepts requests to transfer account ownership.

Documents, Access & Reporting

Does participant have online password-protected access to account?

Yes

Can the complete enrollment process including funding be done online?

Yes

Documents and other services accessible or downloadable on the program's public Web site:

Contact

Website:

http://www.mnsaves.org

Telephone:

1-877-338-4646

Social Media

https://www.facebook.com/MNCollegeSavingsPlan

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