Missouri's 529 education plan remains one of the best in the country, according to an investment research company's ratings Thursday.
MOST, Missouri's 529 Education Plan, is a tax-advantaged savings account designed for education savings and maintained by the Missouri Treasurer's Office.
Contributions to a MOST 529 account are eligible for state tax deductions and grow tax free.
Account holders can use the funds from a MOST account to pay for k-12 private school, college tuition, trade or vocational school, graduate school, and, more recently, registered apprenticeships and student loan repayments.
Books and supplies, computers, internet access, and room and board fees are also eligible expenses for a MOST account.
There are more than 183,000 active MOST accounts with more than $4.125 billion in assets.
Morningstar, an investment research company that has been rating 529 education saving plans since 2012, gave Missouri's MOST a silver rating, putting it in the top quarter of plans around the country.
With most states offering at least one 529 education plan, Morningstar reviewed and rated 62 plans from around the country based on cost, performance, tax benefits and oversight.
Three plans - offered in Illinois, Michigan and Utah - received a gold rating from Morningstar.
Missouri's MOST is among the list of 11 plans that received a silver rating from the investment research company.
In its review, Morningstar noted MOST's "powerful mix of well-resourced and collaborative investment teams, tireless state oversight and enticing fees," and said state Treasurer Scott Fitzpatrick's approach to overseeing the plans provides a beneficial buffer for investors.
"I have worked to make MOST 529 a strong, versatile, and cost-effective education plan for Missourians," Fitzpatrick said in a news release. "Today's announcement is a continued reflection of that work."
Last year, MOST 529 board members approved a contract extension with program manager Ascensus that included reductions to program management fees negotiated by Fitzpatrick.
Fees were reduced by 26 percent over five years, helping to save $8 million for MOST plan participants.
"When I came into office, plan participants had not received a fee reduction in five years," said Fitzpatrick, who is running for state auditor. "Last year, I negotiated a contract extension with our program manager that has already resulted in one fee reduction and will reduce fees two times over the next four years."
Additionally, legislation signed by Gov. Mike Parson in July extended the eligible expenses from MOST 529 accounts to include up to $10,000 for student loan repayments and registered apprenticeships.
Assets within MOST 529 accounts reached $4 billion for the first time earlier this year as well. Assets have grown by more than $1 billion since Fitzpatrick took office.
"These improvements mean that the plan is better suited to serve the needs of Missourians and that participants will keep more of their investment earnings in their 529 accounts, making it a little bit easier to save for education," he said.
Despite the recent developments, Missouri's MOST 529 plan garnered the same rating the state received from Morningstar last year.