Could anyone share some info about the Missouri MOST program? I heard it's something related to a high school degree, but I'm not sure about the details. Thanks!
The program you're referring to sounds like the Missouri MOST 529 Education Plan, which isn't directly related to a high school degree, but it's a savings program that helps families save for future education costs.
A 529 plan is a type of investment account that offers tax advantages to help people save for future qualified education expenses. MOST is Missouri's 529 education savings program, named after the section of the Internal Revenue Code under which these types of plans are authorized.
The great thing about a MOST 529 Education Plan is that it can be used for a variety of educational expenses, not just for college. It can be used for K-12 tuition at public, private, or religious institutions. And for higher education, it covers expenses like tuition and fees, room and board, books and supplies, and even certain expenses for special needs students.
The contributions you make to your MOST 529 account can generally be deducted from Missouri state income tax up to certain limits. And what's more, the investment growth and withdrawals for eligible education expenses are free from federal and Missouri state income taxes.
Keep in mind that while 529 plans can offer significant tax benefits, they can also affect a student's eligibility for financial aid. Assets in a 529 plan owned by a parent or student are considered parental assets on the FAFSA. When a distribution is made from such a 529 plan, it is not reported as income on the following year's FAFSA. But if the 529 plan is owned by someone else, like a grandparent, it's a bit different—the distribution is reported as student income on the following year's FAFSA, and can reduce aid eligibility by up to 50% of the value of the distribution. Due to this, families have to strategically plan when and how to use 529 plan funds.
In essence, the MOST 529 Plan is a valuable tool for families planning for future education expenses. It adds flexibility to where you can use your savings, but you also have to take into account how it affects your financial aid eligibility. Simply put, it’s not a high school program, but a tool to help families finance education. So if you're thinking about saving for college or K-12 tuition, a MOST 529 Education Plan might be a good path to consider.
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