The 529 plan is a tax-advantaged way for families to save for the educational future. The funds can be used to pay for tuition, apprenticeship expenses and repay student loans. Anyone can open an account, contributions grow tax-free and withdrawals are also tax-free for qualified expenses. In New Mexico, there is a New Mexico state income tax deduction for the full amount of any contributions to the 529 account with the education plan. The Education Trust Board of New Mexico encourages families to open an account and contribute and start early to give contributions time to grow.
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