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[00:00:00] Hi everyone. Jonathan from MEFA here and today we’ll take 90 seconds looking at MEFA’s U Fund college investment plan, also known as the Massachusetts 5 29 plan.

What is a 5 29 plan? It’s a tax advantage way to save for college. Here’s how it works. The account owner contributes to the plan and it’s invested in the market. MEFA has partnered with Fidelity to manage the investments which grow tax deferred. When the student is ready to spend these funds, as long as they’re used for a qualified educational expense, there are no taxes on the earnings.

These expenses include tuition, fees, room and board, books, supplies, and equipment. The U Fund is usable at any accredited college in the US and even foreign institutions eligible to receive US federal funding. This applies to both undergraduate or graduate degrees. You also don’t have to use it at a traditional college.

Funds can go towards accredited vocational [00:01:00] programs and career training, and if you can’t use 5 29 plans for your intended student, you can transfer the funds to another family member. Recently, the qualified uses of 5 29 plans expanded to include funding up to $10,000 in K through 12 costs, covering apprenticeship programs and repaying up to $10,000 in college loans.

For those who pay Massachusetts taxes, the U Fund contributions are deductible on state taxes, up to $1,000 for individual filers and $2,000 for married couples filing jointly. For more information on the U Fund, including how to get started, visit mefa.org or call us with questions at eight hundred four four nine nefa.

Thanks for watching.