What are 529 College Savings Programs?
Created under Section 529 of the Internal Revenue Code, 529 College Savings Programs provide compelling savings advantages, such as tax-deferred accumulation, federal tax-free earnings for qualified withdrawals, reductions in estate taxes, and special gift tax treatment. Additionally, 529 College Savings Programs offer personal control and flexibility over assets and beneficiaries.
Saving for college is the biggest challenge parents and students can face. 529 College Savings Programs are a flexible, convenient and tax efficient method to save for college costs including tuition, fees, room, books and supplies. Funds can be used to pay for education at colleges and universities across the nation and at certain schools abroad. New Mexico residents can deduct contributions to New Mexico's 529 College Savings Program dollar for dollar off of their state taxable income. New Mexico is one of only four states to offer an unlimited deduction to its residents.