Missouri MO$T Program Allows Parents to Give the Gift of Education and Enjoy a Tax Advantage This Holiday Season

JEFFERSON CITY, Mo., Dec. 16 /PRNewswire/ -- This year's holiday season brings the chance to help families save for college and allows parents to enjoy a tax advantage through MO$T, Missouri's state-sponsored college saving plan, Missouri Treasurer Sarah Steelman said today.

"There's no better time for families to help prepare for future colleges costs than the holiday season," Steelman said. "By establishing a MO$T account, families can give a gift that grows with the children for a brighter future and qualify for a welcome break on taxes."

The Missouri Saving for Tuition program (MO$T) is a state-sponsored, tax-advantaged 529 college savings plan administered by the national financial services company TIAA-CREF. Missouri taxpayers who open a MO$T account before December 31 may qualify for a state tax deduction of up to $8,000 per tax payer on their Missouri income taxes.

According to 2005 College Board figures, the national average tuition for undergraduates attending four-year public universities jumped 6.6 percent this year, pushing the average annual price of attendance, including room, board and fees, up $751 to $12,127. Meanwhile, the national average tuition at four- year private colleges rose 5.7 percent, raising the total cost of attendance by $1,561 to $29,026.

"Higher Education costs are increasing steadily," Steelman said. "Missouri's college savings program provides an easy way to help save for college and a tax advantage to help families make the most of the savings."

A MO$T account can be used to cover tuition and other qualified college expenses such as books, room and board at virtually all colleges and universities in Missouri, across the country and many schools overseas.

Introduced in November 1999, MO$T currently has almost $800 million in total assets. There are currently over 90,000 accounts with the average account balance exceeding $8,000.

Key advantages of a MO$T account include:

* State Income Tax Deduction -- Account owners can take an annual Missouri
income tax deduction of up to $8,000 per taxpayer for contributions to
MO$T. Contributions must be made by December 31 for account owners to be
eligible for the annual tax deduction.

* Tax-Free Growth and Withdrawals -- Contributions can grow free from
federal and state income tax. Withdrawals used for qualified higher
education expenses, including tuition, books, and certain room and board
expenses are free of both federal* and Missouri income taxes.

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

* Gift Tax Benefits -- MO$T offers federal gift tax advantages by allowing
contributions of up to $55,000 ($110,000 for married couples) to be pro-
rated over a five-year period for each beneficiary.

* Low Expenses -- An annual asset-based management fee of 0.65 percent of
the average daily net assets held in the MO$T Program (excluding assets
held in the Guaranteed Option) is paid for investment management and
administrative services.

Information about MO$T is available at http://www.missourimost.org/ or by calling 1-888-414-MOST. Features like payroll deduction, automatic contribution via a personal checking or savings account, online enrollment and online account access are available. There are no income or residency restrictions on who can open an account.

If you are not a Missouri resident or have taxable income in another state, you should consider whether that other state offers a 529 plan with favorable state income tax or other benefits that are not available if you invest in a Missouri 529 Plan.

You can also learn about the Missouri Saving for Tuition Advisor Program through your financial advisor.

The Missouri Higher Education Savings Program Board has a 529 plan with two programs: MO$T, the "Direct Program" and the MO$T Advisor Program, the "Advisor Program."

Account Owners can invest directly in the Direct Program through the program manager without a financial advisor. The Advisor Program is only available through financial advisors. You can obtain information about the Direct Program by calling 1-800-486-3670 or by visiting the Direct Program's website at http://www.missourimost.org/ . Financial advisors can obtain information about the Advisor Program by calling 1-877-ADV-529.

Individuals must call their financial advisor to obtain information about the Advisor Program.

The Direct Program and the Advisor Program have some different investment options and different fee structures. An initial sales charge (load) and an account fee typically apply to the Advisor Program and not the Direct Program.

Read the applicable Disclosure booklet carefully before opening an account. Investment returns are not guaranteed or insured and will fluctuate based upon a number of factors including general financial market conditions.

TIAA-CREF Individual & Institutional Investor Services, LLC, distributes the Direct Plan and Teachers Personal Investor Services, Inc. distributes the Advisor Program.