Comptroller Glenn Hegar — Texas families can save for higher education on 529 College Savings Day
Published 12:02 am Thursday, May 25, 2023
With 529 College Savings Day approaching on May 29, Texas Comptroller Glenn Hegar is encouraging families to save for their children’s higher education expenses using the state’s 529 college plans.
“As we come to the end of another school year, all of us with school-age children are reminded just how fast the time flies,” Hegar said. “It’s also a reminder that now is the perfect time to start saving for college by opening a 529 account, or even contributing to an existing plan. Families will find that when it comes to planning for their children’s future education, starting early is key and every little bit adds up.”
Texas offers three tax-advantaged 529 plans: the Texas College Savings Plan® (TCSP) and the LoneStar 529 Plan® (LS529), both college savings plans, and the Texas Tuition Promise Fund® (TTPF), a prepaid college tuition plan. The plans are known as 529 plans because they are authorized by Section 529 of the Internal Revenue Code.
TCSP and LS529 allow families to save for college by investing in one or more portfolios, either by enrolling in TCSP directly or in LS529 through a financial adviser. The college savings plans may be used to pay for qualified education expenses at schools nationwide and even at some foreign schools. The college savings plans are open for enrollment year round.
TTPF helps families lock in today’s rates for all or some future undergraduate resident tuition and schoolwide required fees at any two- or four-year Texas public college or university, excluding medical and dental institutions. TTPF newborn enrollment is available through July 31 to lock in 2022-23 prices for children younger than one year of age; general enrollment begins Sept. 1 to lock in 2023-24 prices. Texas residency requirements apply.
The Texas Prepaid Higher Education Tuition Board administers all three 529 plans through the Comptroller’s office.
For more information about the Texas 529 plans, visit SaveNowForCollege.com or call 800-445-GRAD (4723). Select Option 3 for the Texas College Savings Plan, Option 4 for the LoneStar 529 Plan or Option 5 for the Texas Tuition Promise Fund.
The Texas Tuition Promise Fund® (“Plan”), the Texas College Savings Plan® and the LoneStar 529 Plan® (“Savings Plans,” together with the Plan, the “Plans”) are administered by the Texas Prepaid Higher Education Tuition Board (“Board”). Orion Advisor Solutions, Inc. (“Orion”) is the manager for the Plans. The Savings Plans are distributed by Northern Lights Distributors, LLC and maintained by Gemini Fund Services, LLC, neither of which are affiliated with Orion. The Plans and the Board do not provide legal, financial, or tax advice and you should consult a legal, financial, or tax advisor before participating.
Non-residents of Texas should consider whether their home state, or the beneficiary’s home state, offers its residents any tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for participants in that state’s plan.
Texas Tuition Promise Fund
Participation in the Plan does not guarantee admission to or graduation from any college or university. Only the purchaser may direct redemptions, withdrawals, changes in beneficiary, or other contract changes.
You may lose money by participating in the Plan. No part of a contract is a deposit or obligation of, or is guaranteed or insured by, the Board, the state of Texas, or any agency or agent thereof. The contracts have not been registered with or approved by the SEC or any state. Purchasers should carefully consider the risks, fees, charges, and expenses associated with contracts, including Plan termination and reduced Transfer or Refund Value. Transfer Value applies to redemptions at Texas private colleges and universities, out-of-state colleges and universities, medical and dental schools, career schools, and registered apprenticeship programs and is the lesser of: (1) the costs the units would cover at a Texas public college or university; or (2) the original purchase price of the units plus or minus the Plan’s net investment earnings or losses on that amount. The Plan Description and Master Agreement contain this and other information about the Plan and may be obtained by visiting TuitionPromise.org or calling 800-445-GRAD (4723), option 5. Purchasers should read the Plan Description and Master Agreement, and all other Plan documents carefully before purchasing a contract.
Texas College Savings Plan and LoneStar 529 Plan
Estimated total asset-based fees are available on the Allocation Worksheets for the Texas College Savings Plan and the LoneStar 529 Plan, and are published in the Plan Descriptions and Savings Trust Agreements, which are reviewed annually. Fees are subject to change.
An account could lose money including the principal invested. No part of an account is a deposit or obligation of, or is guaranteed or insured by, the Board, the state of Texas, or any agency or agent thereof. Interests in the Savings Plans have not been registered with or approved by the SEC or any state. Investors should carefully consider the investment objectives, risks, fees, charges, and expenses associated with municipal fund securities. The Board may suspend, modify, or terminate the Savings Plans or change investment approaches, offerings, and/or underlying investment funds at any time and without the consent of account owners or beneficiaries. The Plan Descriptions and Savings Trust Agreements contain this and other important information about the Savings Plans and may be obtained by visiting TexasCollegeSavings.com or calling 800-445-GRAD (4723), option 3, for the Texas College Savings Plan, or by visiting LoneStar529.com or calling 800-445-GRAD (4723), option 4, for the LoneStar 529 Plan. Investors should read the Plan Descriptions and Savings Trust Agreements, and all other Savings Plans documents carefully before investing.