New Mexico Students Awarded 529 Account Scholarships With The Education Plan from the National Junior Honor Society
The Education Plan, New Mexico’s 529 college savings plan, is proud to congratulate New Mexico students awarded the 2020 National Junior Honor Society (NJHS) Outstanding Achievement Award!
This marks the fifth year that 500 NJHS students from across the country were selected to receive $500 scholarship awards in the form of 529 accounts with The Education Plan. To date, almost $1.25 million in scholarships have been awarded to nearly 2,500 middle school students around the country.
The National Association of Secondary School Principals (NAASP) sponsors the NJHS for middle school students, and is the creator of the Outstanding Achievement Award. The award recognizes middle school students who have demonstrated their commitment to the five pillars of the NJHS – scholarship, service, leadership, character and citizenship.
New Mexico NJHS OAA Winners 2020
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Alyana Cordova, Clovis, New Mexico
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Kassandra Carrasco, Albuquerque, New Mexico
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Graciela Rodriguez, Rio Rancho, New Mexico
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Zachary Cruz, Rio Rancho, New Mexico
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Ella Lent-Koop, Rio Rancho, New Mexico
"The strategic partnership between NASSP and The Education Plan is based upon our shared commitment to helping middle school students realize their education goals and ease the burden of student loan debt, said Ted Miller, Executive Director of The Education Trust Board of New Mexico, which administers The Education Plan. He added, "We're happy to extend these benefits to such an accomplished group of students and their families."
The costs of higher education continue to increase. A 529 college savings plan is the ideal way for families to save for education costs now so there is less student debt in the future. Students can use their 529 education savings plan to pay for a traditional four-year university degree, community college, or trade school.
The Education Plan provides many federal and state tax-advantages for New Mexico's families. New Mexico is just one of four states allowing a full state income tax deduction for contributions to the 529 Plan. Contributions grow tax-free, and future withdrawals are also tax free as long as they are used to pay for qualified expenses including tuition, room, meal plans, books, supplies, computers, and fees.
Studies show if a family has as little as $500 saved for college, a child is three times as likely to go to college and four times as likely to graduate.
For more information about the NJHS Outstanding Achievement Award, go to www.njhs.us/OAA.
About NASSP
The National Association of Secondary School Principals (NASSP) is the leading organization of and voice for principals and other school leaders across the United States. NASSP seeks to transform education through school leadership, recognizing that the fulfillment of each student's potential relies on great leaders in every school committed to the success of each student. Reflecting its long-standing commitment to student leadership development, NASSP administers the National Honor Society, National Junior Honor Society, National Elementary Honor Society, and National Student Council.
Frequently Asked Questions
A 529 plan is a tax-advantaged investment account that is designed to grow savings for future education expenses for a specified beneficiary. 529 plans offer unique benefits and features that make them an appealing strategy for education related saving.
A 529 plan can be used for “qualified educational expenses.” For federal tax purposes, qualified educational expenses include:
- Tuition and fees at accredited higher education institutions
- Books
- Supplies and equipment
- Room and board for beneficiaries attending on at least a half-time basis.
- Computer technology, equipment, and internet access
- Up to $10,000 a year for K-12 tuition and expenses (Limit increase to $20,000 in 2026)
- Expenses for educational special needs services
- Transfers to an ABLE account for the beneficiary (transfer subject to annual limit)
- Apprenticeship expenses
- Up to $10,000 for student loan repayment
- Credentialing expenses and certification programs
- Roth IRA rollover for the beneficiary
If you're not sure if an expense is considered "qualified," we recommend consulting with a tax professional or advisor. Unqualified expenses will be treated like ordinary income: state and federal taxes will apply, with a 10% federal penalty for withdrawals from your 529 plan used to pay for them.
New Mexico residents can deduct contributions to The Education Plan from their state taxable income each year. This includes contributions made to an account that you are not the account owner of.
You cannot deduct contributions from federal income taxes.
Any person at least 18 years old with a valid Social Security Number (SSN) or Tax Identification Number (TIN) can open a 529 account. The account holder chooses the investment options, designates a beneficiary, and requests the distribution of funds.
The cost of college continues to rise, including tuition, housing, food and supplies, so it’s important to begin saving as soon as possible. You can learn more about how much a typical college education costs on our Cost of College page. It’s never too early or too late to start.
The Education Plan offers a variety of investment options to fit you and your family’s needs, risk tolerance and goals. You can see all of the available investment portfolios on the investments page.
Yes, you can use up to $20,000* a year to cover tuition and expenses for K-12 education.
Qualified K-12 expenses include:
- Tuition (public, private, and religious)
- Curriculum materials, books (including digital/online) and instructional materials
- Tutoring and instructional classes**
- Fees for a nationally standardized norm-referenced achievement test, an advanced placement examination, or any examinations related to college or university admission
- Dual enrollment program fees
Educational therapies for students with disabilities provided by a licensed or accredited practitioner or provider, including occupational, behavioral, physical, and speech-language therapies
*Starting in tax year 2026. The annual limit is $10,000 in tax year 2025 and permitted for tuition only.
**Tuition for tutoring or educational classes outside of the home, including at a tutoring facility, but only if the tutor or instructor is not related to the student and—
(i) is licensed as a teacher in any State,
(ii) has taught at an eligible educational institution,
or (iii) is a subject matter expert in the relevant subject.
You can open an account with The Education Plan online or by mailing in the enrollment form. In order to open an account, you will need the following information:
- Your social security number or TIN
- Your address
- Your bank account information (in order to fund the account)
- The beneficiary’s social security number or TIN
- The beneficiary’s birthday
-The beneficiary’s address
