JEFFERSON CITY, Mo. – Missouri Treasurer Scott Fitzpatrick used May 29 as a way to promote the state’s 529 education savings plan.
COVID-19 concerns have limited face to face opportunities for educating Missourians about the savings plan. 529 Day is part of a sweepstakes type giveaway to help parents discover the advantages of saving for college.
“We are giving away 50 scholarships ranging in size from $529 to $5,029,” said Fitzpatrick.
Winners must use the money to set up a 529 savings plan.
The contributions have already started with some being awarded on May 29 but will continue with 15 scholarships of $5,029 being awarded on June 4. Anyone interested in entering the sweepstakes can go to www.mostsweeps.com.
According to one study by the College Board, the average cost of tuition for an in-state public university is in the neighborhood of $10,000 a year. Saving early can result in less of your money being used to cover that cost.
“The difference between starting early and saving a little bit means that the principal, the amount that you invested is going to be a smaller portion of what you pay for overall for college,” said Fitzpatrick.
He points out that Missouri’s 529 also offers a state tax deduction of up to $8,000 for individuals or $16,000 for those filing jointly.
Up to $10,000 in savings can also be used to pay for tuition at K-12 schools that are private.