MOST 529 tax benefits
With MOST 529, you can save on taxes while you save for higher education.
Pay no income tax on earnings
Your 529 account money grows deferred from federal and state income taxes.
Make tax-free withdrawals
You won't have to pay federal or state income taxes on the money you withdraw to pay for qualified higher-education expenses.*
Save more with state income tax deductions
If you're the account owner and you live in Missouri, you can deduct up to $8,000 ($16,000 if you're married filing jointly) of your MOST 529 Plan contributions when you file your state income taxes.**
Enjoy a federal gift tax incentive
You can contribute up to $14,000 per year ($28,000 if married filing jointly) without triggering federal gift tax.
You can also contribute a larger lump sum of up to $70,000 per beneficiary ($140,000 if you're married filing jointly) and then treat it as though you contributed that amount over a five-year period.***
Keep these points in mind
Your state's plan may offer tax benefits
If you don't qualify for state tax deductions on your MOST 529 account contributions (see "Save more with state income tax deductions" above), think about whether your home state offers a 529 plan. It might have tax advantages or other benefits that aren't available through this plan.
There are penalties for nonqualified withdrawals
If you make a nonqualified withdrawal, you may have to pay state income tax on the portion of your contributions that you originally deducted on your tax return. Any earnings you withdraw may also be subject to federal, state, and local income taxes and a 10% federal penalty tax.