(AUSTIN) — With “529 College Savings Day” set for May 29, Texas Comptroller Glenn Hegar reminds families about the importance of saving for their children’s higher education expenses using 529 college savings plans.
“I want to remind families all over our great state to get a head start on saving for their loved one’s future education,” Hegar said. “Planning ahead by opening a new 529 plan or contributing to an existing plan can be a great way to secure that future opportunity.”
Texas offers three tax-advantaged 529 plans: the Texas College Savings PlanSM (TCSP) and the LoneStar 529 PlanSM, both college savings plans, and the Texas Tuition Promise FundSM (TTPF), a prepaid tuition plan. The plans are known as 529 plans because they are authorized by Section 529 of the Internal Revenue Code.
The TTPF is designed to help families and individuals prepay and lock in today’s rates for all or some future undergraduate tuition and school-wide required fees at any two- or four-year Texas public college or university. The TCSP and LoneStar 529 college savings plans allow families to work toward building college savings by investing in one or more professionally managed portfolios, either enrolling directly in TCSP or in LoneStar 529 through a financial advisor.
The Texas Prepaid Higher Education Tuition Board administers all three 529 plans through the Comptroller’s office. TTPF enrollment for newborns is available through July 31 to lock in undergraduate tuition and school-wide required fees at 2016-17 prices; open enrollment begins Sept. 1 for 2017-18 prices. The TCSP and LoneStar 529 plans are open for enrollment year-round.
Each plan imposes administrative fees and service charges in connection with any agreement, contract or transaction in amounts not exceeding the cost of establishing and maintaining each plan. Before purchasing, carefully consider risks, fees and charges. The plan descriptions contain this and other information and are available by visiting TexasCollegePlans.com.
Comments or complaints may be forwarded to the Prepaid Higher Education Tuition Program, Office of the Comptroller of Public Accounts, P.O. Box 13407, Austin, Texas 78711-3407; or by calling 512-936-2064.