Missouri's MO$T Program
Offers Higher Education Savings Help
One of the most important - and costly - expenses you will face is funding the cost of higher education. If the current national trend continues, you will see higher education-related costs rise significantly in the coming years. For example, new parents looking ahead 18 years can expect the average cost of a four-year college education in the U.S. to triple - to more than $100,000 at public universities and more than $200,000 at private colleges.
Rising costs have made it increasingly difficult for parents to save sufficiently. Consequently, their children are shouldering more of the burden by taking out larger student loans.
To help reverse this trend, a number of states across the country have introduced higher education savings programs that offer attractive tax advantages.
Key features of MO$T
Anyone - a parent, grandparent, relative or friend - can open an account for a beneficiary (eventual student). You can even open an account for yourself. Missouri taxpayers can deduct up to $8,000 in contributions annually from their Missouri adjusted gross income. In addition, all earnings on contributions are exempt from Missouri state taxes and Federal Income Taxes* if used for the qualified higher education expenses of the designated beneficiary. These tax advantages can translate into significant additional savings.
Money in a MO$T account can be used to pay for qualified higher education expenses at any eligible college, university, vocational/technical school, or other postsecondary institution in Missouri or anywhere else in the country. Qualified expenses include tuition, fees, certain room and board, books, supplies, and equipment required for college enrollment or attendance.
MO$T offers three investment options:
- *The Managed Allocation Option is the core investment strategy for the MO$T Program.
- *For a steady, predictable return, with low risk, contributions can be invested in the Guaranteed Option.
- *The 100% Equity Option provides a blend of domestic and international stock mutual funds which, depending on performance, may produce above-average returns over the long term. This option may be appropriate for those who can tolerate greater risk and volatility for at least a portion of their college investment in exchange for potentially higher returns over time.
Call toll free for more detailed information about MO$T:
Or visit www.missourimost.org
* The law allowing federal tax-free qualified withdrawals is set to expire on December 31, 2010. Congress may or may not extend the law beyond this date.
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