Is MA 529 good?

MEFA’s U. Fund is a highly-rated 529 plan that offers low-fees, strong investment performance and a variety of investment portfolios designed to help a beneficiary save for college. Massachusetts residents who invest in MEFA’s U….Strong long-term performance.

Category Score
Overall 5-Cap Rating 4.5

What are the benefits of contributing to a 529 plan?

Advantages of Using a 529 Plan to Save for College

  • Tax benefits.
  • Low maintenance.
  • High contribution limits.
  • Favorable financial aid treatment.
  • Flexibility.
  • Penalty for non-qualified withdrawals.
  • State income tax recapture.
  • Limited investment choices.

Does Massachusetts offer a deduction for 529 contributions?

Effective January 1, 2017 through the 2021 tax year, contributions to Massachusetts 529 plans of up to $1,000 per year by an individual, and up to $2,000 per year by a married couple filing jointly, are deductible in computing Massachusetts taxable income.

How much of 529 contribution is tax deductible?

529 state deductions

State 529 Deduction
Alaska No state income tax
Arizona $2,000 single or head of household / $4,000 joint (any state plan) beneficiary
Arkansas $5,000 single / $10,000 joint beneficiary
California None

Does a 529 affect scholarships?

Although 529 plans can affect your child’s eligibility for need-based financial aid, they don’t affect your child’s eligibility for merit-based aid. If your child has good grades, excels at a sport or has some other skill, they can apply for scholarships issued by universities or private organizations.

How does a 529 work in Massachusetts?

529 overview The Massachusetts 529 plan offers federal tax benefits and in-state tax deductions as you save for a child’s education. Use the funds for a wide range of college expenses at accredited schools nationwide—plus tuition expenses for K-12th grade, certain apprenticeship costs, and student loan repayments.

What is the max 529 contribution for 2021?

Gift-tax exclusion In 2021, that means you can contribute up to $15,000 per beneficiary ($30,000 per married couple) to a 529 plan without having to pay gift taxes. If you set up more than one 529 plan this year, you can contribute up to $15,000 to each without having to file a gift-tax return.