By AP/KWMU
Jefferson City, MO – Changes to Missouri's college savings plan took effect Tuesday. Treasurer Sarah Steelman says the aim is give families more investment choices and lower fees.
The plan, called a 529 plan, lets families save for college costs and let the savings grow tax-free.
Versions of such savings plans are offered across the country. Missourians can receive a state tax deduction of up to $8,000 each per year for contributions.
The Missouri Saving For Tuition, or MOST, program is being handled by a new company, Upromise Investments Inc., Steelman said. Families can either invest directly with the MOST program or through a financial adviser.
Those who invest directly through MOST now have three age-based options and 15 portfolios to choose from. Previously they had one age-based option and two portfolios. Those who go through financial advisers have 24 portfolios to consider.
Also, fees for investing in certain funds are dropping slightly with the new plan.
"I want every child in our state to be able to go to college," Steelman said in a written statement. "We're very excited about the advantages the new MOST plan will offer to help Missouri families achieve this goal." The Missouri college savings plan began in 1999.