Minnesota College Savings Plan NEW! PDF ReportPRO


Minnesota College Savings Plan is a TIAA-managed 529 savings program features an age-based option and ten fixed options including a guaranteed option.

5-Cap Rating


Savingforcollege.com's 5-Cap Ratings provides an evaluation and comparison of 529 plans, utilizing a formula that examines dozens of factors grouped into the following categories. (Scale 0 to 5; 5 is highest)

Performance Costs Features Reliability Resident Upgrade
3.53 4.05 2.33 4.10 0.00


Program type:


How to enroll:

Enroll directly with the program.

Initial year of operation:


State agency(ies):

Minnesota Office of Higher Education and the State Board of Investment

Program manager:

TIAA-CREF Tuition Financing, Inc.

Program distributor:

TIAA-CREF Individual & Institutional Services, LLC

Manager contract term:

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State residency requirements:


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:



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.

Investment Options

Age-based investment options:

The Managed Allocation Option contains 9 portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the beneficiary's age and later reassigned to more conservative portfolios as the beneficiary approaches college age.

Static investment options:

Select among 10 options: 7 static blend portfolios, two single fund portfolios, and the Principal Plus Interest Option.

Underlying investments:

TIAA-CREF institutional mutual 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:

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Portfolio Fees & Performance Lookup

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See Investment Options

Fees & Expenses

Enrollment or application fee:


Account maintenance fee:


Program management fees:

0.14% 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:

Not applicable, Ranges from 0.07% to 0.17% in the age-based and static portfolios; 0.06 to 0.14% in the individual portfolios.

Total asset-based expense ratio:

0.17% to 0.31%. None for the Principal Plus Interest Option. 0.14% for the Money Market Option after fee waiver.

Taxes and other Benefits

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. 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 starting at a federal adjusted gross income of $75,000.

State tax recapture provisions:

In the case of a nonqualified or taxable distribution, the taxpayer is liable to state recapture of their tax benefit in the form of an additional tax for all prior years in which the benefit was claimed. The additional tax is determined by a statutory formula that multiplies the amount of the non-qualified withdrawal or taxable withdrawal by a "credit ratio" and a "subtraction ratio."

- The "credit ratio" is a ratio of (i) two times the total amount of credits that the account owner claimed for contributions to the accounts to (ii) the total contributions in all taxable years to the account owners accounts.

- The "subtraction ratio" is the ratio of (i) the total amount of subtractions that an account owner claimed for contributions to the account owner's accounts to (ii) the total contributions in all taxable years to the account owner's accounts.

The additional tax is calculated as 50% of the product of the credit ratio multiplied by the amount of the non-qualified or taxable withdrawal, plus 10% of the product of the subtraction ratio multiplied by the amount of the non-qualified or taxable withdrawal.

However, the Minnesota additional tax will not apply to any portion of a Non-Qualified Withdrawal that is subject to the federal additional 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 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 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?


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


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:

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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?


Can the complete enrollment process including funding be done online?


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

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State News


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