The Education Plan® can be used to save for college costs not covered by scholarships, grants or other forms of financial aid.
The Education Plan, New Mexico's 529 college savings plan, offers a flexible and tax-advantaged way to save for a child's college tuition.Benefits such as tax free savings, investment management expertise and low fees, allow you to better prepare for tomorrow's college costs—today.
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.
Significant Tax Advantages
- Earnings grow state and federal tax free for New Mexico residents
- Unlimited state tax deductions for New Mexico residents
- Withdrawals for qualified higher education expenses are distributed federal tax free
- 529 plans offer unique gifting and estate planning benefits
- Competitive investment expenses
- No annual account fee for New Mexico residents
- No sales charges
Flexibility to Contribute Your Way
- Open an account with as little as $250, or even as little as $25 each month by using our automatic investment plan
- Anyone, including family and friends, can make contributions at any time
- Invest up to $294,000 per beneficiary
Freedom to Change Beneficiaries
- Easily change the beneficiary (within the “family” of the current beneficiary, as defined by Internal Revenue Code Section 529) without penalty or losing control of your assets
Diversified Investment Options
The Education Plan offers a range of portfolios designed to meet your needs, situation and risk tolerance. Choose between a blended strategy or an index strategy for the underlying investments in your portfolios from OppenheimerFunds, Inc., as well as other respected mutual fund providers.