PRESS RELEASE
Treasurer Fitzpatrick Saves Missourians Millions of Dollars in MOST 529 Education Plan Fees
Jefferson City, MO –Missouri State Treasurer Scott Fitzpatrick today
announced changes to the MOST 529 program which will save Missourians millions
of dollars in program management fees. At this afternoon’s MOST 529
Board Meeting, members voted to approve a contract amendment with program
manager Ascensus. The contract amendment extends the contract period while guaranteeing
program management fee reductions—taking the fees from the current level of 19
Basis Points (bp) to 16bp immediately, and 14bp over five years, a reduction of
over 26%. This reduction means over $8 million in savings for plan
participants. The amendment also guarantees
that any subsequent decreases in fees on specific investment options over time
will be passed on to plan participants instead of being retained as part of the
program management fee. “After nearly a year of
negotiations, I am pleased to announce having reached this agreement,”
Treasurer Fitzpatrick said. “My team and I worked hard to improve the MOST 529
Education plan in a way that saves Missourians money, making it even more
competitive than it was in the 529 space. This agreement means that plan
participants will keep more of their investment earnings in their 529 account, making
it a little bit easier for Missourians to save for education.” MOST,
Missouri’s 529 Education Plan, is a tax-advantaged savings plan for education
expenses. Money in MOST accounts can be used to pay for K-12 tuition, and
trade, college, and graduate school tuition and expenses. Contributions are
eligible for state tax deductions, which can save families up to $864 a year,
and assets in MOST 529 accounts grow tax free. The contract amendment will go
into effect July 1. The current contract was signed in 2015 by former Treasurer
Clint Zweifel. Today’s board meeting was held virtually via Zoom. More information about MOST 529
can be found at MissouriMost.org. ###
