General InformationDownload PDF Report
The Education Plan's College Savings Program
The Education Plan College Savings Program is managed by OppenheimerFunds and features age-based and static portfolio options, some of which are a blend of active-managed funds and index funds, and others are entirely composed of index funds.
- Program typeSavings
- State agencyEducation Trust Board of New Mexico
- Tax deduction
- Program ManagerOFI Private Investments, Inc., a subsidiary of OppenheimerFunds, Inc.
- Program distributorOppenheimerFunds Distributor, Inc.
- Manager contract termUNLOCK PRO
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.
Each plan's performance score is developed directly from Savingforcollege.com's Quarterly 529 Performance Rankings. A 529 savings plan must have at least one year of performance history before they will be assigned a 5-cap rating. For those plans that are not part of our quarterly performance rankings, such as plans offering a single set of bank-based investment options, we assign a performance score by evaluating the returns currently available on similar types of investments outside of 529 plans.
State residency requirements:None
Who can be a participant/owner in the program?U.S. citizens and resident aliens at least 18 years old with a SSI/TIN number, emancipated minors, UGMA/UTMA custodians, and legal entities.
Significant time or age restrictions imposed by the program:None
Did you know?
NM residents can claim a tax deduction for contributions to a NM 529 plan.
Contributions are deductible in computing state taxable income
529 plan contributions grow tax-free.
Withdrawals are tax-free when used to pay for qualified higher education expenses.
You can contribute as much as you want, as often as you want.
The key is to get started. Enroll today by completing a quick form online.
Maximum contributions:Accepts contributions until all account balances in New Mexico's 529 plans for the same beneficiary reach $500,000.
Minimum contributions:No minimum.
Age-based investment options:Choose between 2 age-based approaches, one containing portfolios invested in a blend of actively-managed and index funds and the other invested in index funds only. Contributions in the age-based approaches are placed into the portfolio corresponding to the beneficiary's age, and later reassigned to more conservative portfolios as the beneficiary approaches college age. Each approach is offered in a growth and balanced track.View more age-based investment options
Static investment options:Select among 13 multi-fund portfolios invested in a blend of actively-managed and index funds, 13 multi-fund portfolios invested only in index funds, and 1 individual-fund portfolio (the Short Term Yield Portfolio).View more static investment options
Underlying investments:Investments managed by OppenheimerFunds Inc. and its affiliates along with Vanguard.View a full list of this plan's investment options
Underlying fund allocations:UNLOCK PRO
Portfolio Fees & Performance LookupUNLOCK PRO
Fees & Expenses
Enrollment or application fee:None.
Account maintenance fee:None
Program management fees:0.10% management fee (includes 0.05% fee to the state)
Expenses of the underlying investments:Ranges from 0.05% to 0.06% (portfolio weighted average) for index-only options, and from 0.16% to 0.41% (portfolio weighted average) for all other options.
Total asset-based expense ratio:0.15% - 0.51%
Taxes and other Benefits
- Tax deduction for single filersNo limit
- Tax deduction for joint filersNo limit
Married filing jointly residents contributing $100/month can expect an additional $0 a year in tax savings.
Program match on contributions:None.
State tax deduction or credit for contributions:Contributions to a New Mexico 529 plan are fully deductible in computing New Mexico taxable income.
State tax recapture provisions:The principal portion of rollovers and nonqualified withdrawals from this plan are included in New Mexico taxable income to the extent of prior New Mexico tax deductions.
State definition of qualified expensesThe state's definition of qualified education expenses currently includes expenses for attendance at an institution of higher education 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.
State tax treatment of qualified distributions:Qualified distributions from New Mexico and non-New Mexico 529 plans are exempt.
State tax treatment of rollovers:New Mexico follows federal tax-free treatment except that outbound rollovers are subject to the recapture of prior state tax deductions.
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?No
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
Did you know?
Residents are not limited to investing in their own state's 529 plan.
Another state may offer a plan that performs better and has lower fees.
The 529 plan chosen does not affect which state the student enrolls in.
You can live in New York, open a plan from Nevada and send a student to college in Florida.
The best way to maximize your college savings?
Start early and save often. You can get started today with easy online enrollment.