Q. Who can open an Account?
A. Any person (resident or non-resident) certain entities and UGMA/UTMA custodians who are interested in investing for a college education can open an Account and contribute to MACS on behalf of any beneficiary. You can even open an Account for yourself.

Q. How much can I contribute to the Program?
A. An Account may be opened with a $25 check, electronic funds transfer, or Automatic Contribution Plan. You can also contribute just $15 per Account per pay period using payroll deduction through participating employers. Each Account may have only one Account Owner and one beneficiary. You may, however, open separate Accounts for as many different individual beneficiaries as you wish.

Q. What is the maximum that I can contribute to an Account?
A. There is no annual limit on the amount you may contribute to an Account. However, a lifetime limit known as the Maximum Account Balance Limit applies. In general, you may contribute to your Account if at the time of your contribution the total balance of all Accounts (including accounts in the MPACT Prepaid Program and the MACS Advisor Program) for your beneficiary does not exceed $235,000. Your Account may continue to grow beyond this limit based on the performance of the investment option(s) you've selected.

Q. What can the money in the Account be used for?
A. The Account can be used to pay for qualified higher education expenses at eligible colleges, universities, or other post-secondary institutions in Mississippi or anywhere in the country. Vocational, trade schools and even some schools abroad also qualify. Qualified higher education expenses include tuition, fees, supplies, certain room and board costs, books, and equipment required for college enrollment or attendance.

Q. What room and board expenses are covered?
A. The beneficiary must be enrolled at least half-time at a post-secondary institution in order for room and board to be considered an eligible education expense. For students living at home with parents, as well as students living in non-campus housing, the educational institution's "cost of attendance" allowance for federal financial aid purposes will be the room and board amount treated as a qualified expense. For students living on campus, the amount of room and board treated as a qualified expense can be the actual amount charged the student by the educational institution, if it is greater than the "cost of attendance" allowance.

Q. Do I have to establish a separate Account for each child for whom I wish to contribute?
A. Yes. Each Account may have only one Account Owner and one beneficiary. You may, however, open separate Accounts for as many different individual beneficiaries as you wish.

Q. What if my child decides not to go to college?
A.If the initial Account beneficiary does not use the money, the Account Owner can transfer funds in the Account to another eligible beneficiary, who must be a member of the family of the original beneficiary. Otherwise if the funds are withdrawn for any purpose other than to pay for qualified higher education expenses, there will be a 10% additional tax on the earnings portion of the withdrawal, as well as federal and Mississippi state income tax on earnings at the Account Owner's tax rate, and Mississippi income tax on the portion of the withdrawal attributable to contributions that were previously deducted for Mississippi income tax purposes.