MINNEAPOLIS, May 8, 2013 /PRNewswire/ -- The Minnesota Office of Higher Education announced today that the state's 529 college savings plan has surpassed $1 billion in assets under management. As of April 19, 2013, plan assets totaled $1,029,206,913.
"We're pleased to see Minnesotans continue to place great importance on saving for college," said Jack Rayburn of the Minnesota Office of Higher Education, the state office responsible for administering the Minnesota College Savings Plan. "With the cost of college continuing to rise, it is important to begin saving as early as possible. The Minnesota 529 Plan makes it easy for families to start, and even easier to keep saving."
Since its inception in September 2001, the Plan has helped more than 33,000 account owners save for college in nearly 60,000 accounts.
"Reaching the $1 billion milestone is a tremendous accomplishment, and we are proud to have partnered with the state of Minnesota from the very beginning," said Mike Noone, President of TIAA-CREF Tuition Financing, Inc. "And with the recent reduction in the annual asset-based management fee of 10%, investing in the Plan will be even more cost effective."
Families can open an account with as little as $25. For employers offering payroll deduction, the minimum contribution is just $15. Plus, there are no additional sales charges, start up or maintenance fees. The Plan has no income limit, a $235,000 contribution threshold, and six investment options.
"We are thrilled to see the plan grow to record levels," Rayburn added. "With lower fees, we believe the Minnesota College Savings Plan will attract even more families to save for their loved one's future education."
Any earnings in the Minnesota College Savings Plan's investments can grow free from state and federal taxes. Withdrawals are free from state and federal taxes if used for qualified expenses at any eligible college, university, trade or career school in the nation and some abroad.
For more information and answers to frequently asked questions, visit the Plan's online resource tools.
To learn more about the Minnesota College Savings Plan, visit www.mnsaves.org or call 1-877-338-4646 to speak to a consultant.
The Minnesota College Savings Plan is managed by TIAA-CREF Tuition Financing, Inc. (TFI). TFI is part of the TIAA-CREF group of companies, with over $520 billion in combined assets under management as of 3/31/13.
Consider the investment objectives, risks, charges and expenses before investing in the Minnesota College Savings Plan. Please visit www.mnsaves.org for a Plan Disclosure Booklet with this and other information. Read it carefully. Investments in the Plan are neither insured nor guaranteed and there is the risk of investment loss.
Before investing in a 529 plan, consider whether the state where you or your designated Beneficiary resides has a 529 plan offering favorable state tax benefits available if you invest in that state's 529 plan.
The tax information contained herein is not intended to be used, and cannot be used, by any taxpayer for the purpose of avoiding federal or state taxes or tax penalties. Taxpayers should seek tax advice from an independent tax advisor based on their own particular circumstances. Non-qualified withdrawals may be subject to federal and state taxes and the additional federal 10% tax.
TIAA-CREF Tuition Financing Inc., Plan Manager
SOURCE Minnesota College Savings Plan