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Mississippi Prepaid Affordable College Tuition (MPACT) Program
Mississippi Prepaid Affordable College Tuition (MPACT) Program offers a variety of tuition packages to Mississippi families. It was closed to new enrollment in 2012, pending results of an acutarial audit and reopened to new enrollees on October 1, 2014. Contracts purchased prior to October 1, 2014 are referred to as "Legacy Contracts"; contracts purchased on or after October 1, 2014 are referred to as "Horizon Contracts".
- Program typePrepaid contract
- Enrollment periodSeptember 1, 2018 through May 31, 2019
- State agencyMississippi Treasury Department
- Tax deductionTax deduction for single filers $10,000/yrTax deduction for joint filers $20,000/yr
Ratings & Rankings
Our overall rating for non-residents
This program is not open to you either because it has residency requirements or because it has stopped accepting new enrollments.
State residency requirements:The account owner or beneficiary must be a Mississippi resident at the time of program enrollment.
Who can be a participant/owner in the program?Individuals of legal age, UGMA/UTMA custodians, and legal entities.
Significant time or age restrictions imposed by the program:The beneficiary must be 18 years old or younger at the time of program enrollment. Contract benefits must be used within eight years of the beneficiary's projected college entrance date.
Minimum contributions:UNLOCK PRO
Contract prices:In the 2018-2019 enrollment period, prices ranged from as little as $3,806 for a one-year junior/community college contract for a newborn to as much as $48,799 for a four-year university contract for a twelfth grader.
Available tuition packages:University plan for one to four years, junior/community college plan for one or two years, and a combination plan.
Benefits for beneficiary attending private or out-of-state institution:Weighted average tuition and mandatory fees at Mississippi public institutions, not to exceed actual tuition and mandatory fees.
Contract payment options:Lump sum, annual or monthly installments over a variety of terms, or a combination of lump sum and installment payments. The first payment is due on the first day of the third month following application submittal.
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:$60
Taxes and other Benefits
- Tax deduction for single filers$10,000/yr
- Tax deduction for joint filers$20,000/yr
Married filing jointly residents contributing $100/month can expect an additional $0 a year in tax savings.
Program match on contributions:UNLOCK PRO
State tax deduction or credit for contributions:Contributions to the Mississippi Prepaid Affordable College Tuition Program are deductible in computing Mississippi taxable income up to $10,000 for single filers and $20,000 for joint filers. MPACT earnings are exempt from state income tax.
State tax recapture provisions:The principal portion of nonqualified withdrawals from this plan are included in Mississippi taxable income to the extent of prior Mississippi tax deductions. A rollover to another 529 plan is not subject to recapture.
State tax treatment of qualified distributions:Qualified distributions from Mississippi and non-Mississippi 529 plans are exempt.
State tax treatment of rollovers:Mississippi follows federal tax-free treatment.
Does the sponsoring state exclude the value of an account for state financial aid purposes?Yes
Does participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?Yes, a beneficiary is considered a resident for purposes of tuition regardless of the beneficiary's residence at college enrollment. Beginning with contracts opened after July 1, 2003, this requires that (1) the original purchaser was the parent, grandparent, or legal guardian of the beneficiary, or (2) the beneficiary was a resident of Mississippi at the time the MPACT contract was purchased.
Does the program have a formal agreement with a rewards program or outside scholarship 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:UNLOCK PRO
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