Glossary
Family Member
A "member of the family" of a beneficiary is a person related to that beneficiary as follows: (i) a son or daughter, or a descendant of either; (ii) a stepson or stepdaughter; (iii) a brother, sister, stepbrother or stepsister; (iv) the father or mother, or an ancestor of either; (v) a stepfather or stepmother; (vi) a son or daughter of a brother or sister; (vii) a brother or sister of the father or mother; (viii) a son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law or sister-in-law; (ix) the spouse of the beneficiary or of any of the other foregoing individuals; or (x) a first cousin of the beneficiary. For this purpose, a child includes a legally adopted child and a brother or sister includes a half-brother or half-sister.
Individual Account Application
An individual account application is the account application typically used by an individual (parent, grandparent, family member or friend). Download the Individual Account Application (PDF).
IRA or Roth IRA
IRA is an acronym for Individual Retirement Account. An IRA is a tax advantaged retirement account established by an individual that permits the individual to set aside up to a certain amount per year, with earnings tax-deferred until withdrawals begin at age 59 1/2 or later. A Roth IRA may provide tax-free withdrawals. See a tax advisor for more detailed information.
IRS
The IRS stands for the United States Internal Revenue Service. It is the nation's tax collection agency. It administers the Internal Revenue Code enacted by Congress.
Lifetime Learning Tax Credit
The Lifetime Learning tax credit provides a federal income tax credit based on the first $10,000 in postsecondary education expenses paid by the taxpayer during the tax year. For restrictions and additional details, visit www.irs.gov.
Plan
The Plan refers to the Minnesota College Savings Plan.
Program Manager
The program manager is the person or entity the state of Minnesota engages to provide administrative and other services for the program. TIAA-CREF Tuition Financing, Inc. (TFI) is the Program Manager for the Minnesota College Savings Plan.
Qualified Higher Education Expenses
Qualified higher education expenses include tuition, fees, and the cost of books, supplies, and equipment required for the enrollment and attendance of the beneficiary at an eligible educational institution, and certain room and board expenses. Qualified higher education expenses also include certain additional enrollment and attendant costs of a special needs beneficiary in connection with the beneficiary's enrollment or attendance at an eligible institution. For this purpose, an eligible educational institution generally includes accredited postsecondary educational institutions offering credit toward a bachelor's degree, an associate's degree, a graduate-level degree or professional degree, or another recognized postsecondary credential.
Under the American Recovery and Reinvestment Act of 2009 (the Economic Stimulus Act), computers and related equipment are considered qualified higher education expenses for 2009 and 2010 only, regardless of whether the school requires the purchase of a computer.
Rollover
A rollover is tax-free reinvestment from one qualified program to another within a specific time frame, usually 60 days. You are permitted to transfer funds from another 529 college savings plan to an account in the Minnesota College Savings Plan for the same beneficiary once within a 12-month period without incurring federal income tax. The 529 college savings plan from which you are transferring funds may have different features, costs and surrender charges. You should consult with your tax advisor or the other 529 college savings plan. State and local taxes may apply.
Glossary terms continue:
