(July 28, 2014) - Just before the kids go back to school this fall, some major changes to the state’s College Savings Plan go into effect.
Effective Aug. 12, 2014, TIAA-CREF Tuition Financing, Inc., the trusted company that has been managing Minnesota’s 529 College Savings Plan since its founding in 2001, is reducing its management fee by over 50 percent. “This reduction will put us among the top plans with the lowest fees in the nation,” said Robert Stern, Minnesota College Savings Plan’s Program Manager.
Also new as of Aug. 12, a change in the investment lineup. Account owners will have access to four new Options: a conservative option, an aggressive option, a large cap fund option and an equity plus interest option. There will also be a change to the existing managed allocation option, which automatically shifts an account’s stock market exposure over time based on the child’s age. And, the contribution limit for each account is being raised from $235,000 to $350,000.
“With all these changes we have a plan all Minnesotans should be proud of. I hope as many people as possible will take advantage of saving for college through the Minnesota College Savings Plan,” said Michael Noone, President of TIAA-CREF Tuition Financing, Inc.
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. All earnings in the plan’s investments grow tax-free as long as the funds are used for qualified expenses at any college, university, trade or career school in the nation and some foreign countries.
To learn more about the Minnesota College Savings Plan, visit www.mnsaves.org or call (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 $613 billion in combined assets under management as of 6/30/14.
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 C10116
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