MEFA’s U.Fund, the Massachusetts 529 college savings plan, offers you control and flexibility as you save for a child’s college education.
- Allows you to choose how your money is invested
- Can be used at any accredited college
- Easy and affordable to open
- Tax benefits
- Professionally managed by Fidelity Investments
How It Works
- Account can be opened with a $50 contribution — or as little as $15 if you set up automatic monthly payments
- Investment options include a target date strategy based on the age of the beneficiary, and a custom strategy that you create based on your investment objectives
- Earnings are not taxed as they accumulate, and withdrawals are tax free when used for qualified higher education expenses*
- Massachusetts residents saving in the U.Fund can claim a MA state income tax deduction of up to $1,000 for single filers and up to $2,000 for married persons filing jointly beginning in 2017.
- Savings can be used at any accredited college in the United States and some foreign institutions. Learn about spending your 529 funds here.
- Family members can add to your 529 account through College Gifting
- Account can have only one beneficiary, so each child should have a separate 529 plan account
- If the designated beneficiary decides not to attend college, you may take a non-qualified withdrawal (earnings are subject to federal income taxes and a 10% federal penalty) or change the beneficiary to any of the following family members of the original beneficiary: son or daughter, stepson or stepdaughter, brother or sister, stepbrother or stepsister, father or mother, ancestor of father or mother, stepfather or stepmother, son or daughter of brother or sister, brother or sister of father or mother, son- or daughter-in-law, father- or mother-in-law, brother- or sister-in-law, spouse of original beneficiary or of any individual listed above, first cousin
* Qualified expenses include tuition, required fees, books, room and board (for students attending at least part time), and required supplies and equipment.
Who Is Eligible
Anyone can open an account in the U.Fund. It doesn’t matter which state you live in, and the beneficiary can be anyone you choose — a relative, a friend, or even yourself. You can change the beneficiary at any time to a family member of the original beneficiary.
How to Enroll
It’s easy to open an account in the U.Fund. To learn more, visit the Fidelity Investments website. OPEN AN ACCOUNT
Transfers and Rollovers
You can invest in a U.Fund account using assets from an existing UGMA, UTMA, or another state’s 529 plan account:
- From an UGMA or UTMA Account: To transfer assets from a Uniform Gifts to Minors Act or Uniform Transfers to Minors account, first liquidate the UGMA/UTMA account assets and pay any applicable taxes, fees, and expenses. Then, invest the cash in an UGMA/UTMA 529 plan account, which is subject to the rules for both types of accounts. You may want to consult a tax professional regarding your specific tax situation. (Note that you may not change the beneficiary of an UGMA/UTMA 529 plan account.)
- From a 529 Plan: To roll over assets from another state’s 529 plan into a U.Fund account, download the Fidelity College Investing Plan Rollover Form or call 800-544-2776. You may roll over a 529 plan account for each beneficiary once during any 12-month period.
See Terms & Conditions