TUITION-SAVINGS PLAN IS POPULAR IN MISSOURI

Another plan to encourage savings and save taxes is the Missouri Savings for Tuition program, usually referred to as MO$T.

State Treasurer Nancy Farmer was rightfully proud on MO$T when she visited Cape Girardeau last week. The program has been tagged by Money magazine as one of the top five tuition-savings plans in the nation.

Under MO$T, money can be set aside for tuition at any college. While contributing to the plan, Missourians can take an annual deduction on their state income taxes. When money is withdrawn from the plan to pay college expenses, it is taxed by the federal government at the student's rate, which is usually low. And there are no state taxes on the funds.

All in all, MO$T is turning out to be a popular way to make sure there is money on hand when it's time to start paying tuition bills. Since the program began in 1998, 14,000 accounts have been opened, totaling $40 million. That's a big and positive step toward sound savings.