The MOST 529 Plan is a state-sponsored, tax-advantaged plan that lets parents save for qualified higher education expenses, including tuition, certain room and board expenses, books and supplies and then withdraw the funds, when needed, free from federal and state income taxes. As little as $25 may be the initial investment.
The plan implemented and administered by the Missouri Higher Education Savings Program Board involves the purchase of municipal securities (portfolio units) through the services of the Vanguard Group, Inc. and American Century Investments. Investment returns are not quaranteed and earnings on nonqualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as state and local income taxes.
For a child born in 2010 a spokesperson for Zweifel says that in 2028 the projected cost of tuition and fees at Missouri State University will climb to $41,986 per year and at the University of Missouri-Columbia, $64,943.