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.
These 529 plan accounts can be opened for various types of beneficiaries including:
The beneficiary does not have to be a family member.
Allowable College Expenses
A 529 plan allows you to set aside funds for the following college expenses:
- Tuition for post-secondary schools, including schools other than UNM
- Room and board
- Books and supplies
- Contributions to the program earn interest while invested.
- Distributions are non-taxable when distributed if used for qualified higher education expenses.
- All contributions made by New Mexico residents are New Mexico state tax deductible on PIT state tax return at the end of the calendar year.
- 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.
- The $30 annual account maintenance fee is waived if you or your beneficiary is a New Mexico state resident or you have an account balance of at least $10,000.
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.