MN has not changed their rules on 529 plans to allow plans to pay for private K-12 expenses that are now allowed under the new tax code according to this article.
Lots of moving parts as MN provides a tax credit on their state income tax forms for those using the accounts to save for college but with the new change for private K-12 state experts are worried about immediate loss of some taxable income.
The real benefit, according to the state experts and independent economists NPR interviewed for this story, is for affluent families — many of whom already have kids in private K-12 schools. They can now use their old 529, or open a new one, to help pay that tuition, all while getting a nice state tax break.
Keep your eyes open for coming changes to Minnesota’s handling of this recent change to the tax law.
Headquartered in Eden Prairie, MN., SaveNotes, LLC provides a unique alternative to stocks, bonds and CD’s by providing fixed income with high return, while remaining easy to invest.
SaverNotes pays interest to its investors based on a variety of available investment amounts and maturity dates. SaverNotes have no fees or expenses and are available for any Minnesota investor. Current rates range from 3.00% to 6.00% based on terms of two to five years. Investors can also invest through their IRA account.