Did you know Minnesota is no longer a tax neutral state (no state tax deduction) for 529 Plan contributions? Minnesota taxpayers now have the option of claiming either a tax credit or deduction for contributions to ANY state 529 plan. As a Minnesota tax payer, you can either deduct up to $3,000 for a married couple filing jointly or $1,500 for all other filers for contributions made to a qualified 529 account or opt for a non-refundable tax credit of half contributions up to $500, subject to phase-out starting at a federal adjusted gross income of $75,000 (single filer). The credit is reduced by any withdrawals made by that taxpayer during the taxable year.
For additional details see on this new benefit, visit Minnesota HF 1, 1st Engrossment - 90th Legislature, 2017 1st Special Session.
For additional information on 529 Plans, education planning and how you save can impact financial aid, contact:
Benjamin A. Hovland, CFP®, CRPC®
Phone: 952.388.6390 firstname.lastname@example.org
5775 Wayzata Blvd, Suite 360, St. Louis Park, MN 55416
Signature Wealth Management is a marketing name for securities and investment advisory services offered through SagePoint Financial, Inc. Member FINRA/SIPC.