MANKATO, Minn. (KEYC) — National College Savings Month is all about highlighting the importance of saving money and starting to put your money away at an early age.
The Minnesota 529 College Savings Plan, or MNSAVES, is helping people invest money in their children’s future.
This program is easy to navigate, very flexible and safe to use.
“The premise of the plan is that it is a federal program. Much like your 401k which is a segment of the IRS code. The 529 section of the IRS code allows you to put after-tax money into an account, choose an investment option and then that money has the opportunity to grow tax-free. When it comes time for college, you can withdraw all of that money tax-free as long as it is going toward high education expenses," explained Jim Mandler, senior marketing manager for MNSAVES.
There are many ways that families can make the saving process easier on themselves.
“The best way that we have seen it demonstrated is on incremental payments that allows your money to have the potential to grow over time. If you can manage to have any amount put away on a frequent basis, it helps grow that nestag. For the eventual time when it will be used for higher education," Mandler added.
There are no opening or maintenance fees, but there is a small percentage fee that is accrued.