Historically, the Missouri 529 Plan (MOST) has allowed people to save for college tax-free, while also receiving a state tax deduction annually for monies invested in the MOST program. Effective December 31, 2017, the new tax laws now allow 529 plans to also be used towards K-12 educational expenses.
A MOST 529 tuition savings plan is an investment account sponsored by the State of Missouri. Up to $16,000 ($8,000 for single filers) in contributions are deductible from Missouri taxes every year and investments in the plan grow tax-free. When you use MOST funds for eligible expenses (tuition, room and board, and other college or vocational school expenses), you pay no taxes on the disbursement.
Starting in January 2018, the MOST 529 program is expanding to allow families to save and use funds in their accounts for elementary and secondary tuition expenses, up to $10,000 per year per student.
Following are some Q & A’s pertaining to these changes: