Tuesday, August 01, 2023
JOPLIN, MO – Missouri State Treasurer Vivek Malek is reminding families about the state’s three-day Back-To-School Sales Tax Holiday weekend starting Friday, August 4 – and he’s encouraging families to get added value by investing their sales tax holiday savings into tax-free MOST 529 Savings Accounts for future education needs.
“It’s great that Missouri leaders, like former Lt. Governor Peter Kinder, sponsored into law the Back-To School Sales Tax Holiday 20 years ago, because making every dollar count is important to Missouri families trying to get the best educational experience for their children,” Treasurer Malek said. “MOST 529 Savings Accounts are a smart place to invest savings from the Sales Tax Holiday. Even a few dollars invested now can grow in value over the years, free of state or federal taxes, and Missouri residents also get a state tax deduction for their contributions to their children’s MOST 529 Savings Accounts.”
Investments in a MOST 529 Savings Account may be used by families for tuition to a two-year or four-year college or university, trade or vocational school, registered apprenticeships or K-12 private institutions. The money may also be used for qualifying expenses such as books, supplies, room and board and computer equipment. Moreover, a recent change permits MOST 529 beneficiaries to roll over unused funds up to $35,000 into Roth IRAs tax and penalty free beginning in 2024 if those accounts are over 15 years old.
In the first half of this year, the number of MOST 529 Savings Accounts created by families increased by almost 1,600. As of June 30, 2023, there are more than 190,000 beneficiary accounts with assets totaling $3.9 billion available for future education needs.
Importantly, Treasurer Malek noted, there is no minimum deposit required to open a MOST 529 Savings Account. “So it’s a good idea to make even small deposits, and investing Back-To-School Sales Tax Holiday savings might be ideal to start a good savings habit for the future,” Treasurer Malek said. Missouri’s basic state sales rate is 4.225 percent.
For more information about MOST 529 Savings Accounts, visit missourimost.org or call 888-414-MOST (888-414-6678).