• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

The College Investor

Millennial Personal Finance and Investing

  • About
  • Free Tools
  • Merch
  • Contact
  • Save For College
      • How To Start

      • How To Save For College
      • How To Pay For College
      • What Is the Average Cost of College?
      • What Is A 529 Plan and Where to Open One in Your State
      • How Much Should You Have In A 529 Plan By Age
      • How To Use A 529 Plan For Private Elementary And High School
      • What Are Qualified Expenses For A 529 Plan (And What Doesn’t Count)?
      • The Best Brokers To Open A 529 Plan
      • Tools + Accounts

      • 529 Plans: The Ultimate College Savings Plan
      • 529 Plan Contribution Limits
      • Prepaid Tuition Plans | What To Know
      • Understanding And Using 529A ABLE Accounts
      • Using A Roth IRA To Save And Pay For College
      • FAFSA Deadlines for Financial Aid
      • CollegeBacker Review
      • Upromise Review
      • UNest Review
      • Other Options

      • Student Loan And Financial Aid Programs By State
      • The Guide To Military And VA Education Benefits
      • How To Fill Out The FAFSA
      • How To Find College Scholarships
      • The Best College Scholarship Search Websites
      • How To Find Grants To Pay For College
      • Pell Grants: What They Are And How To Qualify
      • Understanding Federal Work-Study
      • How To Use A 529 Plan If Your Child Doesn’t Go To College
  • Student Loans
      • Borrowing

        • How Student Loans Work
        • How To Apply For A Student Loan
        • How To Find The Best Student Loans And Rates
        • Best Private Student Loans
        • Best Student Loans To Pay For Graduate School
        • Best Student Loans To Pay For Medical School
        • Parent Loans To Pay For College
        • Perkins Loans: The Ultimate Guide
        • Guide To Income Sharing Agreements (ISAs)
        • Best International Student Loans
      • Get Out Of Debt

        • Best Places To Refinance Student Loans
        • Best Student Loan Repayment Plans
        • Best Student Loan Refinancing Bonuses And Promotional Offers
        • Student Loan Forgiveness: 80+ Programs To Forgive Your Loans
        • The Full List Of Student Loan Forgiveness Programs By State
        • Public Service Loan Forgiveness (PSLF)
        • Top Student Loan Scams
        • Average Student Loan Monthly Payment
        • Average Student Loan Debt By Year
      • Reviews

        • Credible Review
        • Splash Review
        • Ascent Review
        • Citizens Bank Review
        • Commonbond Review
        • Earnest Review
        • ELFI Review
        • Laurel Road Review
        • LendKey Review
        • SoFi Review
  • Investing
      • How To Start

        • How To Start Investing in High School
        • How To Start Investing In College
        • How To Start Investing In Your Twenties For 22 – 29 Year Olds
        • How To Start Investing In Your 30s For 30 – 39 Year Olds
        • How To Start Investing With $100 Or Less
        • How To Give Kids The Gift Of Stock
        • What Is Dividend Growth Investing
        • IRA Rollover Chart
      • Tools + Accounts

        • Best Online Stock Brokers
        • The Best Traditional And Roth IRA Accounts
        • The Best Robo-Advisors
        • The Best Investing Apps
        • The Best Places to Trade Options
        • The Best Places To Open A Health Savings Account
        • The Best Solo 401k Providers
        • The Best Self-Directed IRA Providers
        • Best Cryptocurrency Exchanges
      • Reviews

        • Vanguard Review
        • Fidelity Review
        • M1 Finance Review
        • TD Ameritrade Review
        • Charles Schwab Review
        • Robinhood Review
        • Webull Review
        • Betterment Review
        • Wealthfront Review
  • Earn More Money
      • Extra Income

        • 15 Best Side Hustles You Can Start Earning With Now
        • Side Hustle Ideas: 50+ Ways To Make Money Fast
        • 100+ Real And Honest Ways To Make Money In College
        • 80 Ways To Make Money From Home (In Your Pajamas)
        • 5 Quick Money Making Ideas (That Take Less Than 1 Hour)
        • 10 Interesting Ways You Can Make Money Driving
        • High-Paying Side Gigs That Earn $1,000 or More Per Month
        • The 10 Best Money-Making Apps
        • Paid Surveys: Earn Money For Giving Your Opinion Online
        • 10 Crazy Ways To Make $10,000 You’ve Never Heard Of
      • Build Wealth

        • 30 Passive Income Ideas You Can Use to Build Real Wealth
        • 3 Ways To Make $50,000 Per Year Without Working With Passive Income
        • How To Become A Real Estate Investor With Just $500
        • 15 Best Online Business Ideas
        • How to Create Streams of Passive Income on a Limited Budget
        • Residual Income: 7 Super Smart Ways to Build It
        • The Most Common Multiple Income Streams
        • How To Become A Real Estate Mogul With Only $10,000
      • Reviews

        • Fundrise Review
        • RealtyMogul Review
        • FarmTogether Review
        • AcreTrader Review
        • Swagbucks Review
        • Survey Junkie Review
        • TopCashback Review
        • DoorDash Review
  • Personal Finance
      • Banking

        • Best High Yield Savings Accounts
        • Best Money Market Accounts
        • The Best Free Checking Accounts
        • The Best Bank CD Rates
        • The Best Business Checking Accounts For Small Business
        • The Best Online Banks
        • 5 Best Credit Unions Nationwide of 2021
        • Best College Student Checking Accounts
      • Insurance

        • Best Life Insurance Companies
        • Renters Insurance
        • Car Insurance
        • Pet Insurance
        • Umbrella Insurance
        • Disability Insurance
        • Tuition Insurance
        • Travel Insurance
      • Credit Tools

        • Best Budgeting Apps
        • Cash Advance Apps
        • How To Get A Free Credit Score Report
        • The Best Credit Monitoring Services
        • Debt Settlement: Inside The Secret World
        • Credit Repair Explained: Should You Pay For Help?
        • Best Personal Loan Companies And Lenders
        • Online Loan Companies To Borrow From Home
      • Tax

        • Best Tax Software
        • Free Tax Software
        • IRS Tax Refund Calendar
        • Common IRS Questions and Errors
        • Federal Tax Brackets
        • Capital Gains Tax Brackets
        • 401k Contribution Limits
        • IRA Contribution Limits
        • HSA Contribution Limits
  • Forum
  • Search

New Mexico 529 Plan And College Savings Options

New Mexico Student Loan Programs

New Mexico has a 529 plan called The Education Plan that can help you save for college. New Mexico also has a 529 Able Plan as well.

If you live in New Mexico, these might be good options for you to save for college. 

These programs are designed to help make college more affordable - so that you can get the education you need. By saving for college early on, you can make paying for college easier down the road.

If you're not quite sure how 529 plans work, check out this starter guide to What Is a 529 Plan?

There is also a specific order of operations to save for college that we recommend families follow. These programs are specific to the State of New Mexico. Each state has different rules when it comes to 529 plan savings.

Table of Contents
Average Cost Of College In New Mexico
New Mexico 529 Plan Tax Information
Contributions
Rollovers
Qualified Distributions
K-12 Education
Student Loans
Non-Qualified Distributions Taxes, Penalties, Recapture
New Mexico 529 College Savings Plan Options
The Education Plan's College Savings Program
New Mexico 529 Able Plan Options
Able New Mexico
Other Programs To Save For College
CollegeBacker
Upromise
New Mexico Financial Aid

Average Cost Of College In New Mexico

When saving for college in New Mexico, it's important to take into consideration the cost of attendance in the state. If you choose to go to an out-of-state school, you need to look at the average cost of attendance in that state.

There are 54 colleges and universities in the State of New Mexico.

The total average cost of college (Cost of Attendance) in New Mexico for in-state residents is $18,095 for 2020. This includes tuition, room and board, books and supplies, and other expenses.  

For just tuition alone, the average undergraduate tuition for in-state residents is $3,246 for 2020. The cost of tuition in New Mexico has been rising at about 10% per year.

See how this compares to the average cost of college here. Keep in mind the average student loan debt by graduating class here.

Explore the data here.

New Mexico 529 Plan Tax Information

Tax savings is one of the big benefits of using a 529 plan to save for college. On a federal-level, there is no tax savings for contributions, but qualified distributions are tax-free. 

Here are the special tax benefits and considerations for using a 529 plan in New Mexico.

Contributions

New Mexico offers a state tax deduction for contributions to a 529 plan with no limit! That means contributions are fully deductible on New Mexico state taxes.

Minimum: There is no minimum contribution.

Maximum: Accepts contributions until all account balances for the same beneficiary reach $500,000.

Rollovers

Rollovers into the state plan are allowed, with no tax deduction.

Outbound rollovers are subject to recapture of prior tax deductions received.

Qualified Distributions

Qualified distributions from a New Mexico and non-New Mexico 529 plan are tax-free. 

K-12 Education

New Mexico does not conform with Federal law in regards to using a 529 plan for K-12 tuition. See this guide: Using a 529 Plan For Elementary and High School Private Education.

Student Loans

New Mexico does not conform with Federal law for using a 529 plan for student loans.

Non-Qualified Distributions Taxes, Penalties, Recapture

A non-qualified withdrawal from a New Mexico 529 plan are subject to recapture of prior tax deductions received on both the principal and earnings.

New Mexico 529 College Savings Plan Options

New Mexico has several 529 plan options - one consumer plan and one plan that is sold by financial advisors (we're big advocates of doing-it-yourself, you don't need to pay a financial advisor for this). 

The Education Plan's College Savings Program

The Education Plan is the name of New Mexico's 529 Plan. This plan offers a variety of investment options, including age-based portfolios that become more conservative as the child approaches college, and static investment fund options.

The funds offered include Vanguard, Schwab, SSGA, BlackRock, New York Life, TIAA-CREF, American Funds, and DFA.

Fees:

There is a program management fee of 0.10%.

The underlying funds all charge expense ratios from 0.02% to 0.34% depending on the investment option.

Who Should Use It:

We recommend that New Mexico residents use the The Education Plan's College Savings program due to the generous tax benefits, low fees, and plan investment options.

We recommend that out-of-state residents consider this plan as well.

New Mexico 529 Able Plan Options

529A Able accounts are accounts designed to help those with disabilities escape poverty and save for themselves. Learn more about 529A Able Plans here. 

Able New Mexico

The Able New Mexico Plan is a 529A plan open to all residents in New Mexico.

This plan allows contributions of up to $15,000 per year from all sources.

It does have a minimum initial contribution amount of $50 per account. The minimum subsequent contribution amount is $1.

The plan does have an account maintenance fee of $42 annually, assessed at $3.50 per month. It also has a program management fee of 0.19%.

You can open an Able New Mexico Plan here.

Other Programs To Save For College

A 529 plan is one way to save for college. Remember, we have a full guide on our approach to college savings here - and it helps you find other options.

If you're looking for ways to boost your college savings, check this out:

CollegeBacker

CollegeBacker is one of our favorite ways to save for college because they make gifting for college so easy. You can setup an account, link your 529 plan (in most states), and get a unique URL that you can share with friends and family to save for your children's college.

Plus, they have Backer Bucks, which allow you to earn rewards and rebates for the shopping you already do - directly deposited into your children's 529 plan.

Check out CollegeBacker here >>

Upromise

Upromise is another awesome tool to help you save for college because they have a lot of ways that you can earn money for your 529 plan. You can get rebates and rewards, and you can get cash back into your child's 529 plan by using the Upromise credit card.

Check out Upromise here >>

New Mexico Financial Aid

Using a 529 plan isn't the only way to save money for college. Each state typically offers a variety of financial aid programs for their residents. These include scholarships and grants, and sometimes unique forgivable student loan opportunities.

Check out the list of New Mexico Student Loan and Financial Aid Programs.


Return to the full list of 529 Plans By State.

529 Plan Guide

Primary Sidebar

Robert Farrington

Hi! My Name is

America's Millennial Money Expert

Welcome to The College Investor. We're here to help you escape student loan debt so you can start investing and building wealth for the future

Our expert guides, reviews, and more are designed to help you achieve your financial goals.

Want to learn more? See what's in my wallet.

As Featured In

Social Media

Popular Posts

Side Hustling

Side Hustle Ideas: 50+ Ways To Make Money Fast

Best Side Hustles

15 Best Side Hustles You Can Start Earning With Now

Net Worth of Millennials

The Average Net Worth Of Millennials By Age

Ways To Get Student Loan Forgiveness

Student Loan Forgiveness: 80+ Programs To Forgive Your Loans

529 Plan

How Much Should You Have In A 529 Plan By Age

Make Money From Home

80 Ways To Make Money From Home (In Your Pajamas)

Crazy Ways To Make $10,000

10 Crazy Ways To Make $10,000 You’ve Never Heard Of

Passive Income Ideas

30 Passive Income Ideas You Can Use to Build Real Wealth

Make $50,000 Per Year

3 Ways To Make $50,000 Per Year Without Working With Passive Income

Student Loan Scams

Top Student Loan Scams

Ultimate Guides

529 Plan Guide

529 Plans: The Ultimate Guide To College Savings Plans

Student Loans and Financial Aid By State

Student Loan And Financial Aid Programs By State

Student Loan Advice

The Definitive Guide To Student Loan Debt: Everything To Know About Your Loans

Student Loan Forgiveness By State

The Full List Of Student Loan Forgiveness Programs By State

newretirement

How to Start Saving Now: The College Graduate’s Guide to Saving for Retirement

Latest Research

How Much Americans Pay To File Their Taxes

How Much Americans Pay To File Their Taxes

73% of Americans Support Student Loan Forgiveness

75% of Americans are Familiar With Investing Apps

75% Of Americans Are Familiar With Investing Apps, And Most Prefer The Monthly Fee Service Model

Footer

Banking

  • The Best Free Checking Accounts
  • The Best Online Banks
  • The Best Bank CD Rates
  • Best Money Market Accounts
  • Best High Yield Savings Accounts
  • The Best Bank Bonus Offers
  • The Best Business Checking Accounts

Investing

  • Best Online Stock Brokers In 2021 (According To Readers)
  • The Best Places To Open An HSA (Health Savings Account)
  • The Best Investing Apps That Let You Invest For Free
  • How To Buy Stocks Online For Free
  • The Best Robo-Advisors Of 2021

Student Loans

  • Best Places To Refinance Student Loans
  • Best Private Student Loans
  • How To Find The Best Student Loans And Rates
  • Best Student Loan Refinancing Bonuses And Promotional Offers

Insurance

  • The Top 10 Online Life Insurance Companies
  • The Ultimate Guide To Renters Insurance – Everything You Need To Know
  • The Cheapest Car Insurance For College Students

Connect

  • Contact Us
  • Advertise
  • Press & Media

About

  • About
  • Our Team
  • Podcast
  • How We Make Money
  • Archives

Social

Copyright © 2021 · The College Investor · Privacy Policy ·Terms of Service · DO NOT Sell My Personal Information