MOST 529 benefits

Our 529 plan has a lot to offer you (as the account owner) and your student.

Benefits for you

Tax benefits

Get federal and state tax savings

The plan offers generous tax savings, like deferred income tax on earnings, tax-free withdrawals* (when used for qualified expenses), and state income tax deductions.**

Flexibility & control

Save for anyone

Open an account for a child, grandchild, friend—even yourself.

Know there's adaptability

If your beneficiary doesn't end up needing the money, you can transfer the account to an eligible family member. Or if you really need the money back, you can get to it. However, a 10% penalty tax on earnings (as well as federal and state income taxes) will apply.

Maximize savings

You can contribute up to $550,000. This includes all 529 accounts sponsored by the State of Missouri for the same beneficiary.

Keep ownership

A MOST 529 account allows you to control how your investments are spent, unlike a custodial account under the Uniform Gifts/Transfers to Minors Act (UGMA/UTMA), for instance, which lets your beneficiary use the money for any purpose once he or she reaches the age of majority.

Ease of use

Start now with a small amount

Opening an account is free, and you can invest as little as $1 each time you contribute.

Invest easily

Invest by check, recurring contributions (also known as an automatic investment plan or AIP), electronic bank transfer, or payroll direct deposit (if available through your employer), or by moving money from other education savings vehicles.

Manage your account online

You can view statements, make contributions, maintain your account, and obtain performance information online. If you open more than one account, you can view them all with one username and password.

Investments

Invest in a diverse portfolio

No matter your comfort level and experience with investing, you can find the right investment to suit your risk tolerance and investing style. Choose a single age-based option—designed for higher education—or assemble your own mix of individual portfolios, including stock, international, bond, and short-term investments.

Trust the experts

Recordkeeping and related services for the plan are managed by Ascensus College Savings Recordkeeping Services, LLC, and its affiliates, with investment management provided by Vanguard.

 

Boost your college savings with Upromise®

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Earn extra savings

Upromise® is a free service that helps families save for college. Upromise provides unique opportunities for members to earn cash back rewards for everyday activities such as shopping, dining, paying with the Upromise® Mastercard® and more. Rewards are automatically deposited as contributions to your MOST 529 account when you reach $50 in rewards.

Join Upromise for free today:

  • Earn $5.29 in bonus rewards when you open a new Upromise account.
  • Earn an additional $25 in bonus rewards when you link your first MOST 529 account.
  • Earn additional rewards continuously by shopping online through Upromise.com and dining at over 10,000 restaurants nationwide.
  • Earn cash back rewards on every purchase with the Upromise Mastercard.

Learn more at Upromise.com. It’s fast, easy, and secure.***

Save more with Ugift

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Invite family and friends to contribute

Ugift® lets family and friends contribute to your MOST 529 account through an easy-to-use online system or through print coupons. It's the perfect gift.

Benefits for the student

Pay for tuition, supplies, and more

When used for higher-education expenses, money can be used to pay for tuition, room and board (with limitations), books, supplies, fees, and equipment that are required for enrollment or attendance. Also, computers, certain peripheral computer equipment, internet access and related services, and computer software if the items are to be used primarily by the beneficiary during enrollment or attendance at any eligible postsecondary school in the United States or abroad—really anything that's considered a qualified education expense.

As of 2018, for federal tax benefit purposes, qualified expenses also include tuition of up to $10,000 per student per year in connection with enrollment or attendance at an elementary or secondary public, private, or religious school. In addition, Missouri taxpayers can use MOST 529 assets to pay for K–12 tuition, with no state tax consequences. State tax treatment of K–12 withdrawals is determined by the state where the taxpayer files state income tax. If you're not a Missouri taxpayer, please consult with a tax advisor.

Effective August 28, 2021 certain Apprenticeship Program expenses and Loan Repayments, as defined below, will be treated as Qualified Education Expenses for purposes of Missouri state income tax; accordingly, effective for distributions taken beginning August 28, 2021, any earnings used for the following expenses will not be subject to Missouri state income tax:

  • Apprenticeship Program expenses. Fees, books, supplies, and equipment required for the participation of a designated beneficiary in an apprenticeship program registered and certified with the Secretary of Labor under Section 1 of the National Apprenticeship Act (29 U.S.C. 50).
  • Loan Repayments. Principal or interest on any qualified education loan (as defined in section 221(d) of the Internal Revenue Code) of the designated beneficiary or a sibling of the designated beneficiary, up to a lifetime limit of $10,000 per individual. Note, if you make an education loan repayment from your Account, Section 221(e) (1) of the Internal Revenue Code provides that you may not also take a federal income tax deduction for any interest included in that education loan repayment.

Account Owners who take a withdrawal for these purposes in tax year 2021 prior to August 28, 2021 should consult their tax advisor for further guidance. Account Owners in states other than Missouri should seek guidance from the state in which they pay income taxes. The taxpayer has the responsibility to maintain records to document the use of funds associated with these provisions, and any reporting that may be required.

Go to the school of your choice

You can use the 529 account to pay for a wide variety of eligible institutions including colleges, universities, and trade and vocational schools in the United States or abroad. You can also use the 529 assets to pay for K–12 tuition up to $10,000 per student per year at public, private, and religious schools.

Pay no taxes on withdrawals

You won't have to pay federal or state income taxes on the money you withdraw to pay for qualified expenses.

Decrease impact on financial aid

Unlike some other types of education savings accounts, 529 accounts owned by a parent have a relatively minor impact on higher-education financial aid because the assets aren't considered the child's.