Missouri's MO$T Program

Missouri's MO$T Program

Offers Higher Education Savings Help

One of the most important - and costly - expenses you will face is funding the cost of higher education. If the current national trend continues, you will see higher education-related costs rise significantly in the coming years. For example, new parents looking ahead 18 years can expect the average cost of a four-year college education in the U.S. to triple - to more than $100,000 at public universities and more than $200,000 at private colleges.

Rising costs have made it increasingly difficult for parents to save sufficiently. Consequently, their children are shouldering more of the burden by taking out larger student loans.

To help reverse this trend, a number of states across the country have introduced higher education savings programs that offer attractive tax advantages.

Key features of MO$T

Tax-Advantage Earnings
Anyone - a parent, grandparent, relative or friend - can open an account for a beneficiary (eventual student). You can even open an account for yourself. Missouri taxpayers can deduct up to $8,000 in contributions annually from their Missouri adjusted gross income. In addition, all earnings on contributions are exempt from Missouri state taxes and Federal Income Taxes* if used for the qualified higher education expenses of the designated beneficiary. These tax advantages can translate into significant additional savings.

Eligible Expenses
Money in a MO$T account can be used to pay for qualified higher education expenses at any eligible college, university, vocational/technical school, or other postsecondary institution in Missouri or anywhere else in the country. Qualified expenses include tuition, fees, certain room and board, books, supplies, and equipment required for college enrollment or attendance.

Professional Management
MO$T offers three investment options:

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* The law allowing federal tax-free qualified withdrawals is set to expire on December 31, 2010. Congress may or may not extend the law beyond this date.