EDUCATION TRUST BOARD NEWS
As the end of the year rapidly approaches, The Education Plan®, New Mexico’s 529 college savings plan, reminds New Mexico taxpayers that contributions to the plan must be made by December 31, 2020 to be tax-deductible on state income tax returns for the 2020 tax year.
“Whatever stage of life you may be in, investing in education is always an important factor in financial planning,” said Ted Miller, Executive Director of The Education Trust Board of New Mexico, the state agency that sponsors the Plan. “New Mexico taxpayers who contribute to the Plan before year-end can give themselves the benefit of a 2020 tax deduction for the full amount of any contribution made to the Plan. The deduction can be taken by anyone who makes a contribution to the Plan – even as a gift to another person’s account.”
“Whether you’re looking for a smart investment that will grow tax-free and provide a lasting difference in your or your loved ones’ lives, or you’re planning your estate, a 529 savings plan is a great choice,” added Miller. “Contributions are tax-deductible on state income tax returns, and earnings grow free of state and federal taxes. Withdrawals are also tax-free when used to cover qualified education expenses.”
The Education Plan® can be used to cover tuition, housing, meal plans, books, supplies, computers and fees at any school nationwide.
To learn more about the Education Plan, visit TheEducationPlan.com or call 1-877-337-5268.