(image: MN Saves Facebook)
As inflation rises rapidly, Minnesota’s college savings plan, MNSAVES, is reminding students and parents that its fund can reduce student loan debt.
Spokesperson Emmanuel Torres says there are three main tax benefits to using the 529 plan…
“You don’t have to report your earnings to the IRS, tax-free withdrawals, and then the state of Minnesota actually provides its taxpayers a state tax deduction or credit that they can apply for every year.”
Torres says the account acts like a Roth I-R-A, but is used for college instead of retirement.
He explains that this opens the door for the funds to be used on more than the traditional four-year public degree…
“Community colleges, public universities, private universities, junior colleges, technical programs, trade schools, certified apprenticeship programs, I mean the list goes on and on.”
Torres says in addition to tuition, the money can also be used to pay for room and board, books, laptops, and other qualified expenses.
(content: courtesy MNN)
