MNSAVES Surpasses $2 Billion helping Minnesota families save for college

published March 10, 2025

St. Paul, Minn. (March 10, 2025) – MNSAVES, Minnesota’s 529 college savings plan, has reached an important milestone, surpassing the $2 billion mark in assets. The continued growth of the program reinforces MNSAVES’ commitment to helping Minnesota families save for the cost of higher education.

"We know that many families are being extra cautious as they invest their hard-earned dollars during these unprecedented times, which is why we are so grateful for all of those Minnesota families who trust MNSAVES to be their savings partner," said James Mandler, program manager for the MNSAVES 529 College Savings Plan. "MNSAVES remains committed to helping families improve their financial wellness by offering the savings tools they need as they plan for their future."

The milestone comes just after MNSAVES was once again named a medalist 529 plan by Morningstar, an independent investment research and management firm. This marks the fifth year in a row that Morningstar has given the 529 plan a distinguished “Silver” rating. MNSAVES has maintained its rating, noted by Morningstar for its low fees, high-quality investment strategies and the state’s strong oversight of the plan. According to the firm, "The Minnesota College Savings Plan boasts a dedicated 529 team, a robust investment offering, and a sharp state board underpinning a Morningstar Medalist Rating of Silver. The plan is attractively priced, and the generous tax benefit makes it a must-have for Minnesota residents." – Morningstar, October 2024^*

MNSAVES offers a menu of investment options designed to meet a family’s needs at any given time. You can contribute whatever dollar amount is feasible to your account ($25 minimum), and when it comes time to pay for college, funds can be withdrawn tax-free when used for qualified expenses such as tuition, housing, food and supplies for colleges, universities, technical colleges, professional schools, graduate schools, as well as certain continuing education courses – nationwide and at many schools abroad.

MNSAVES also offers the option to schedule automatic contributions from a bank account or by payroll direct deposit, making regular contributions hassle free. Plus, a new feature allows account owners to automatically increase their recurring contributions each year, so as career growth and life circumstances dictate, savers can help ensure their college savings keeps pace.

Additionally, MNSAVES offers triple tax benefits – tax-deferred growth on contributions, tax-free withdrawals when used for qualified expenses, and Minnesota residents, regardless of their relationship to the child/beneficiary, can claim a state income tax deduction of up to $3,000 for joint filers and $1,500 for all other filers.

Individuals can set up an MSAVES account in as little as 15 minutes with $25 and start saving for college. For more information about MNSAVES or to open an account, visit mnsaves.org. MNSAVES is also on Facebook, Instagram, YouTube and LinkedIn.

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Footnotes

1. ^*In an annual review (10/29/2024) of the largest 529 college savings plans (59 plans representing more than 90% of 529 assets), Morningstar identified 32 plans that stand out above the rest, assigning those plans Gold, Silver, and Bronze Morningstar Analyst Ratings for 2024. These plans offer a well-researched asset-allocation approach, a robust process for selecting and monitoring underlying investments, a well-resourced and experienced investment team, stable and engaged oversight from the state and low fees. Investors in what Morningstar analysts consider the best 529 plans should be well-positioned for the future. The four key pillars used by Morningstar to evaluate 529 college savings plans include – Process, People, Parent, and Price. For more information about Morningstar’s overview of the Minnesota College Savings Plan, go to Morningstar.com. TIAA-CREF Tuition Financing, Inc. compensates Morningstar for the ability to quote these ratings in public communications. Past performance does not predict future results. Source: Morningstar.com. A Morningstar Analyst Rating for a 529 college savings plan is not a credit or risk rating. Analyst ratings are subjective in nature and should not be used as the sole basis for investment decisions.↩
2. To learn more about the Minnesota College Savings Plan, its investment objectives, risks, charges and expenses see the Plan Description at mnsaves.org before investing. Read it carefully. Minnesota taxpayers can reduce their state taxable income up to $3,000 if married filing jointly ($1,500 filing single) for contributions made into a Minnesota College Savings Plan, or may be eligible for maximum credit amount up to $500, subject to phase-out based on certain federal adjusted gross income thresholds. If the funds aren’t used for qualified higher education expenses, a federal 10% penalty tax on earnings (as well as federal and state income taxes) may apply. Investments in the Plan are neither insured nor guaranteed and there is the risk of investment loss. Consult your legal or tax professional for tax advice. TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, distributor and underwriter for the Minnesota College Savings Plan.

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