For families saving for future education expenses, a 529 plan can be a valuable tool, offering tax advantages and other benefits. However, not all 529 plans are the same. Nearly every state offers its own program, and it may feel overwhelming trying to find the right option for your family’s situation.

While all 529 plans share federal tax benefits and guidelines for eligible education expenses, different state plans can vary in key details. Each plan may have its own characteristics related to fees, investment options, matching funds and state tax benefits. You can open a 529 plan in any state, although there may be special tax deductions for your home state.  

Learn about plan options offered in Bell’s main markets below.

North Dakota: College SAVE

North Dakota’s 529 plan offers matching opportunities for state residents, including:

• $200 new baby match
• $100 kindergarten kickoff match
• $300 match for North Dakota residents who meet certain income criteria

Additional highlights include:

• A state tax deduction of up to $5,000 (or $10,000 for married filing jointly) for North Dakota taxpayers
• No enrollment or application fee
• Account maintenance fee is waived if participant or beneficiary is a North Dakota resident
• Account holders do not need to be a North Dakota resident

 

Minnesota: MNSaves

Minnesota’s MNSaves program allows state taxpayers to reduce their taxable income with a tax deduction or tax credit of up to $1,500 (or $3,000 for married filing jointly). Other highlights include:

• No enrollment or application fee
• No maintenance fee
• Account holders do not need to be a Minnesota resident

 

Arizona: AZ529

Arizona’s 529 plan offers a tax deduction for state taxpayers of up to $2,000 per beneficiary for single filers (or $4,000 per beneficiary for married filing jointly). Other highlights include:  

• No enrollment or application fee
• No maintenance fee
• Account holders do not need to be an Arizona resident

 

Choosing the Right Plan for Your Family

Because you’re not limited to your home state’s 529 plan, it’s worth comparing different options based on factors like tax benefits, fees, and your long-term goals. At Bell Bank Wealth Management, we can help you identify the plan that’s right for your situation. Contact us today to start the conversation. 

Investing and wealth management products are: Not FDIC Insured | No Bank Guarantee | May Lose Value | Not A Deposit | Not Insured by Any Federal Government Agency