The 529 Education Plan of New Mexico
About
A 529 plan is a special, state-sponsored savings program that recognizes the need for families to set aside significant assets for college. UNM employees can contribute money to a Section 529 plan from The Education Plan of New Mexico through a payroll deduction.
Beneficiaries
These 529 plan accounts can be opened for various types of beneficiaries including:
- Yourself
- Children
- Grandchildren
- Relatives
- Friends
The beneficiary does not have to be a family member.
Qualified College Expenses
A 529 plan allows you to set aside funds for the following higher education expenses:
- Tuition for post-secondary schools, including schools nationwide
- Room and board
- Books and supplies
- Computers, printers, and internet connections
- Fees
Plan Benefits
- Anyone can open or contribute to a 529 account.
- Accounts can be opened with as little as $25/month.
- There are a variety of investment options to choose from.
- Distributions are non-taxable if used for qualified higher education expenses.
- Contributions made by New Mexico residents are tax deductible on PIT state returns in the year the contribution is made.
- There is no age limit for the initial beneficiary when you establish an account.
- You can change beneficiaries to another member of the family of the original beneficiary anytime without penalty.
More Information
For more information, contact the UNM Payroll Department at (505) 277-2353, The Education Plan of New Mexico at (877) EDP-LAN8 (337-5268) or visit The Education Plan website.