MNSAVES 529 Accounts

What is a 529 Plan?

A smart, tax-advantaged way to save for college! Where you save and invest your hard-earned dollars matters, and the Minnesota 529 College Savings Plan can make saving for higher education easy.

529 College Savings Account FAQ (PDF)

MNSAVES Offers many Advantages

For questions about the Minnesota 529 College Savings Plan or establishing your college savings payroll contributions, contact Emmanuel Torres (PDF).
952.830.3111 | emmanuel.torres@tiaa.org Hablamos Español

  • MN Tax Deduction: Minnesota taxpayers canreduce their state taxable income up to $3,000 if married filing jointly ($1,500 filing single) for contributions made into a Minnesota College Savings Plan, or may be eligible for maximum credit amount up to $500, subject to phase-out based on certain federal adjusted gross income thresholds.
  •  Tax Free: Contributions grow tax-deferred, and withdrawals are tax-free when the money is used for qualified higher education expenses.
  • Flexible: Funds can be used at eligible schools nationwide and abroad.
  • Gifting: You do not need to do this alone—family and friends can help by gifting to a child’s MNSAVES account at birthdays, graduations, holidays, or just because. Minnesota taxpayers may be eligible for the state income tax deduction or tax credit.
  • Valuable: 529s can be used to cover a range of expenses, including tuition, certain room and board, books, required equipment, fees and computers.

Expenses Beyond the Tuition Benefit

While Augsburg employees are eligible for generous tuition benefits, maintaining a 529 plan is a strategic financial move for several reasons:

  • Covers Tuition & Non-Tuition Expenses: A 529 plan allows you to pay for tuition, room and board, books, required technology, and lab fees using tax-free distributions.
  • Augsburg Graduate Programs: Employees enrolled in Augsburg graduate programs are eligible for up to $5,250 per year in employer tuition assistance. 529 funds can help cover additional costs not met by the benefit.
  • Educational Flexibility: A 529 provides a safety net if your student decides to attend a school outside the tuition exchange network or if your employment status changes before their graduation.
  • Minnesota Tax Benefits: Contributions to a 529 plan qualify for a Minnesota state income tax deduction or credit, and any investment growth remains entirely tax-free when used for qualified education costs.
  • New Roth IRA Rollover Option: The SECURE 2.0 Act now allows you to roll over up to $35,000 from a 529 into a Roth IRA for the beneficiary.

Setting Up Payroll Direct Deposit

You can have funds automatically deposited in your 529 savings account by setting up a payroll direct deposit.

  1. Log into your account at mnsaves.org.
  2. Go to the “Profile & Documents” section on the home screen and select “Payroll
    Direct Deposit,” then “Change Payroll Instructions.”
  3. Enter the dollar amount per paycheck (and per beneficiary if you have
    more than one account to be contributed per paycheck).
  4. Select “Next.” View the payroll direct deposit instructions by selecting “Get Form.”
  5. Log in to ADP via Inside Augsburg > Administrative Tasks > Payroll to add a direct deposit allocation.