State Treasurer Clint Zweifel (ZWY-ful) announced MOST – Missouri’s 529 College Savings Plan will be awarding a lucky Missourian $529 to put towards saving for college. The winner will be selected from the pool of applicants who enter online for a chance to win at www.Most529Savings.com. Entries will be accepted from May 1 through May 31, 2010.
"This $529 scholarship will provide valuable aid that could grow over time to help pay for a child's college education," said Treasurer Zweifel, who sponsors the college savings program. "This contribution, combined with the investments made by MOST 529 account owners on behalf of Missouri’s children, has a real impact on education savings and college affordability."
The giveaway drawing will coincide with 529 College Savings Day, which corresponds with the date of May 29. The winner will be notified by phone June 1, 2010. College Savings Day is an opportunity to remind Missouri’s families that saving for college is one of most important things they can do for the students in their lives. Saving even just a little bit of money as early as possible is integral to lowering the expense hurdle of a college education.
"If you start investing $50 per month into the MOST 529 account when a child is born, you could accumulate $16,633 by the time the child turns 18," Treasurer Zweifel said. "Small investments can add up to make a real impact over time on a child's education."
MOST 529 currently has more than 123,000 owners and more than $1.3 billion in assets, an all time high for the program.
To enter the drawing to win the $529 contribution, Missouri residents are encouraged to visit www.Most529Savings.com and click on the “529 Day” button. Missouri taxpayers who are age 18 or older may enter to win on behalf of any beneficiary*. The prize money must be invested in an existing MOST 529 account or in a newly opened account in the plan. Winners will be announced June 4, 2010.
MOST 529 has several features that make it an affordable option when saving for college:
- Start saving with as little as $25. Additional contributions of $25 may be made at anytime.
- Save on taxes. Contributions and earnings grow free of federal and Missouri state income taxes, and can be withdrawn tax-free when used for the beneficiary's qualified higher-education expenses.*** Plus, Missourians who are account owners qualify for a state income tax deduction on their contributions.****
· Choose from a variety of investments. With options from Vanguard and Missouri-based American Century Investments, account owners should be able to find an investment that matches their goals and comfort level.
For more information about MOST 529, visit www.Most529CollegeSavings.com or www.treasurer.mo.gov.
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*Except employees and their immediate families and members of the same household of Sponsor (MOST - Missouri's 529 College Savings Plan), The Vanguard Group, Inc.,
Upromise Investments, Inc., the Missouri's Treasurer's Office and their respective agents or affiliates.
**A plan of regular investment cannot assure a profit or protect against a loss in a declining market. Monthly investments of $50 for a period of 18 years; annual rate of return on investment of 5% and no funds withdrawn during the time period specified. This hypothetical is for illustrative purposes only. It does not reflect an actual investment in any particular 529 plan or any taxes or penalties payable/due upon distribution.
***Earnings on non-qualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as state and local income taxes. The availability of tax or other benefits may be contingent on meeting other requirements.
****Contributions to the plan in a tax year are deductible from Missouri state income tax, but may be subject to recapture in subsequent years if you make a nonqualified withdrawal.
Investment returns are not guaranteed, and you could lose money by investing in the Plan. Participants assume all investment risks, including the potential for loss of principal, as well as responsibility for any federal and state tax consequences.
For more information about MOST-Missouri's 529 College Savings Plan, call 1-800-962-5168 or visit www.most529collegesavings.com to obtain a Program Description. Investment objectives, risks, charges, expenses, and other important information are included in the Program Description; read and consider it carefully before investing. Vanguard Marketing Corporation, Distributor and Underwriter.
If you are not a Missouri taxpayer, consider before investing whether your or the designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program.
The Missouri Higher Education Savings Program (the "Program Trust") is a trust created by the State of Missouri. When you invest in MOST-Missouri's 529 College Savings Plan (the "Plan"), you are purchasing portfolio units issued by the Program Trust. Portfolio units are municipal securities. The Plan has been implemented and is administered by the Missouri Higher Education Savings Program Board (the "Board"). Upromise Investments, Inc., and Upromise Investment Advisors, LLC, serve as the Program Manager and Recordkeeping and Servicing Agent, respectively, with overall responsibility for the day-to-day operations, including effecting transactions. The Vanguard Group, Inc., and American Century Investments serve as Investment Managers for the Plan. Vanguard Marketing Corporation, an affiliate of The Vanguard Group, Inc., markets and distributes the Plan. The Plan's portfolios, although they invest in mutual funds, are not mutual funds.
Upromise is a registered service mark of Upromise, Inc. Vanguard is a trademark of The Vanguard Group, Inc. Used with permission.
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