State Plan

Massachusetts 529 Plan

Massachusetts offers two 529 college savings plans, a direct-sold plan called The U.Fund College Investing Plan and a pre-paid tuition plan called The U.Plan Prepaid Tuition Program.

U.Fund College Investing Plan

MEFA’s U.Fund College Investing Plan is a traditional 529 plan that allows you to invest money today and reap tax benefits when you withdraw it to pay for qualified education expenses.

Type: Direct – this Massachusetts 529 plan can be purchased directly through the state.

Fund Family: Fidelity Investments

Minimums: To get started you can deposit $50 unless you choose to use the automatic monthly plan. With this option, you can open an account with as little as $15. Minimum subsequent contributions are $25 and $15 with the automatic monthly plan.

Maximum Contributions: Currently, the combined account maximum is $350,000 for your Massachusetts 529 plan. Of course, your total amount in the plan can be higher as your investments group. 529 plans typically increase the contribution limit over time, so you may be able to contribute more

Tax Benefits: In and out-of-state participants get the federal tax benefits.

Other Benefits: Through your U.Fund College Investing Plan, you have the option to partake in a reward program that offers 1.5% rewards points. Cardholders can earn points that convert into account contributions.

Residency: U.Fund College Investing Plan is open to all United States residents, not just those in Massachusetts.

You can learn more about this Massachusetts 529 plan at the official website.

The U.Plan Prepaid Tuition Program

Massachusetts also offers a pre-paid tuition plan that lets you lock in today’s rates for college. It can be used at any of the 80 participating Massachusetts colleges and universities. However, private college expenses will be prorated and may not be fully covered.

For more information about The U.Plan Prepaid Tuition Program visit the official website.