|
|
MACS & MPACT Comparison
The State of Mississippi provides two unique ways to help families save for college. Known as "Section 529 plans," Mississippians can participate in either or both of these programs as part of their efforts to plan and save for higher education expenses.
 The Mississippi Affordable College Savings (MACS) Program allows families to save for all qualified Section 529 higher education expenses, undergraduate and graduate level, including tuition, fees, books, certain room and board, etc. While there is no residency requirement, Mississippi taxpayers may receive up to a $10,000 state tax deduction on contributions ultimately used for qualified higher education expenses ($20,000 for joint filers). Contributions and their associated investment earnings can be distributed to cover qualified expenses. However, there is no guarantee by the MACS Program, TFI or the State of Mississippi that any specific educational cost will be fully covered, and MACS is not backed by the full faith and credit of the State of Mississippi.
 The Mississippi Prepaid Affordable College Tuition (MPACT) Program guarantees full payment of tuition and mandatory fees at any public college in the State of Mississippi, no matter how much the cost of tuition rises between the time you purchase your contract and the time the child attends college. MPACT does not cover books, transportation, room and board, or other college costs. Taxpayers may deduct the full contribution from State income tax; however, either the purchaser or the beneficiary must be a resident of Mississippi at the time of purchase. Also, MPACT is backed by the full faith and credit of the State of Mississippi. To request more information about the MPACT Program, please call 1 800 987-4450 or visit its dedicated web site.
| Comparison of MACS & MPACT Programs |
MACS |
MPACT |
| Federal Tax Deferral |
Yes |
Yes |
| State Tax Exemption |
Yes |
Yes |
| State Tax Deduction |
Yes |
Yes |
| Guarantees Payment of a Portion of College Costs |
No |
Yes |
| May Be Used for Tuition |
Yes |
Yes |
| Backed by Full Faith and Credit of the State |
No |
Yes |
| Market Rates of Return |
Yes |
No |
| Beneficiary Can Be Over 18 |
Yes |
No |
| Residency Requirements |
No |
Yes |
| Available for Books and Other Qualified Higher Education Expenses |
Yes |
No |
| Available for Graduate School |
Yes |
No |
|
----------------------------------------------------------------------------------------------------------
The tax information herein is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding tax penalties. It was written to support the promotion of the Mississippi Affordable College Savings plan. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor.
Consider the investment objectives, risks, charges and expenses before investing in the
Mississippi Affordable College Savings plan. For details, refer to the Disclosure Booklet containing
this information. Read it carefully.
Before investing in a 529 plan, you should consider whether the state you or your designated beneficiary reside in or have taxable income in has a 529 plan that offers favorable state income tax or other benefits that are only available if you invest in that state's 529 plan.
TIAA-CREF Individual & Institutional Services, LLC, member FINRA, distributes securities products.
The State of Mississippi, its agencies, TIAA-CREF Tuition Financing, Inc., Teachers Insurance and Annuity Association of America and its affiliates do not insure any account or guarantee its principal or investment return except for TIAA-CREF Life Insurance Company’s guarantee to the Mississippi Affordable College Savings plan under the funding agreement for the Guaranteed Option. Account value will fluctuate based upon a number of factors, including general market conditions. |
|
|
