From buying groceries to paying mortgages, many families stretch resources to manage their households. So people have money for their children’s educations, states have adopted the 529 savings plan. If you want to enroll your child in a therapeutic school, public or private learning center, or an additional institution in Missouri, below is a guide to the ins and outs of the MOST 529 program and its benefits.     

What Is the MOST 529 Savings Plan?

Sponsored by Missouri, the MOST 529 program allows state residents to put contributions towards investment accounts earmarked for the purposes of education. The no-fee enrollment is open to anyone, with different investment options available. Account owners can save the funds for themselves or assign beneficiaries, which can include friends as well as family members, who will need the money for school.

By making contributions to the program, Missouri residents receive state tax deductions. The growth and income are not subject to federal or state income taxes, nor will taxes be applied when withdrawing funds for qualified expenses. Up to $8,000 ($16,000 if married filing jointly) of the account contributions can be deducted when filing state income taxes.

Is the Program a Good Fit for Your Family?

This program is designed to give Missouri families peace of mind that there are funds set aside for every stage of their kids’ academic careers. The federal tax benefits associated with the program now extend to paying for expenses in K-12 education, as well as post-secondary costs.

Specifically, up to $10,000 per student can be used to pay for tuition in private, public, religious-based, and therapeutic schools on the elementary and secondary grade levels. Using the contributions for this purpose also comes with income tax breaks. A portion of your previous 529 plan contributions may also be rolled into Achieving a Better Life Experience (ABLE) plans without tax penalties. The funds go towards the medical treatment and education of people with special needs. 

Please consult your tax adviser for details. Your family may have circumstances not addressed in this article that may affect  your taxes and deductions. 

If your student needs help overcoming obstacles that could hinder their quality of life, use funds from the MOST 529 program towards tuition at Logos School. From behavioral therapy to rich, student-focused academic courses, the therapeutic school offers programming to teach young adults in the Greater Saint Louis area life skills to find future personal and professional success. The therapists and educators will also offer advice to address your child’s feelings and needs at home. To inquire about enrollment options, call (314) 997-7002. Visit the therapeutic school online to fill out an admission application and follow them on Facebook to see photos from fun student activities.