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Mississippi State Treasurer Lynn Fitch Mississippi State Treasurer Lynn Fitch


What are the federal and state tax advantages?

When you contribute to the Mississippi Affordable College Savings (MACS) Program, any account earnings are federal and Mississippi income tax-deferred. Plus, distributions used to pay for qualified higher education expenses will be free from federal and Mississippi income tax. Non-qualified withdrawals may be subject to federal and state taxes and the additional federal 10% tax.

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Is there a Mississippi income tax deduction?

Yes, you may be eligible for a Mississippi income tax deduction. The amount contributed by a Mississippi taxpayer to MACS Program accounts during a tax year is deductible from Mississippi adjusted gross income in an amount not to exceed $10,000 for a single return or $20,000 for a joint return for that tax year.

The earnings portion of a non-qualified withdrawal will be taxable to a resident recipient of the withdrawal. The contribution portion of a non-qualified withdrawal that was previously deducted for Mississippi income tax purposes will be included in the resident recipient’s Mississippi gross income.

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Who can open an account?

Any individual with a Social Security number or federal Taxpayer Identification Number who is a U.S. citizen or resident alien can open an account and contribute to the MACS Program account on behalf of any beneficiary. An organization described in Section 501(c)(3) of the Internal Revenue Code, an estate or a trust may also open an account. Such entities will be subject to additional restrictions or administrative requirements and may not open an account online or participate in e-Delivery. You can even open an account for yourself.

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What are my investment options?

The Plan offers you a choice of ten Investment Options. These options vary in their investment strategy and degree of risk, allowing you to select an option or combination of options that may fit your needs. To see the list of Investment Options, brief descriptions and associated fees and expenses, visit Investment Options. For more information on the risks involved in investing in such Investment Options, and the type of investor for whom each investment option may be appropriate, and investment option performance, read the Disclosure Booklet.

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Can I make a payment online?

You may make contributions online by logging into your account here. If you have not logged on to your account before you may create your online access here.

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Do I have to use my account at a Mississippi college or university?

No. The money in your account may be used at any eligible educational institution. This includes public and private colleges and universities, graduate and post-graduate schools, community colleges, and certain proprietary and vocational schools.

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Can I transfer assets in a Coverdell Education Savings Account to the MACS program?

Yes, but you should discuss this with your financial advisor to determine if there are any tax or other consequences. To do a transfer, use the Rollover Form and complete an Account Application.

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Can I roll over funds from another 529 plan into the MACS program?

You are permitted to transfer funds from another 529 college savings plan to an account in the MACS Program for the same beneficiary twice within a 12-month period without incurring federal income tax. The 529 college savings plan from which you are transferring funds may be subject to differences in features, costs and surrender charges. You should consult your tax advisor or the other 529 college savings plan. State and local taxes may apply. To complete a rollover, use the Rollover Form.

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Can assets from an UGMA/UTMA account be transferred to the MACS program?

Yes, though transferring UGMA/UTMA assets into a 529 plan account may result in a tax liability. You should discuss this with your financial advisor. UGMA/UTMA accounts cannot be opened online. To open a MACS Program UGMA/UTMA account, use the Custodial Account Application.

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What fees and expenses do I pay with MACS?

You can see all annual asset-based fees associated with your MACS account in the Disclosure Booklet.

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