Texas Comptroller of Public Accounts
FOR IMMEDIATE RELEASE
May 28, 2019
(AUSTIN) — To celebrate National 529 College Savings Plan Day, or “529 Day,” the plan manager of the Texas Tuition Promise Fund® — NorthStar Financial Services Group, LLC — is giving away tuition units valued at $1,000 to one new account holder who establishes a first-ever account for a child less than 1 year of age.
The tuition units will be given to the first purchaser who opens an account and meets eligibility enrollment requirements beginning at 12:01 a.m. CDT on May 29.
“This is the perfect time to start saving for college by opening a 529 account, or even contributing to an existing plan,” Texas Comptroller Glenn Hegar said. “Saving for your loved one’s future higher education helps save money on tomorrow’s expenses.”
Texas offers three tax-advantaged 529 plans: the direct-sold Texas College Savings Plan® (TCSP) and the advisor-sold LoneStar 529 Plan® (LS529), both college savings plans, and the Texas Tuition Promise Fund® (TTPF), a prepaid tuition plan. The plans are known as 529 plans because they are authorized by Internal Revenue Code Section 529.
In March 2019, the “For Their Future Movement” involving 48 public-private partnerships in 28 states and Washington, D.C., was launched to increase the awareness of 529 plans. The effort marks the first time that state plans and their partners have united to form a national campaign. The partners’ 529 message is being amplified over the next two years under an agreement with Fred Rogers Productions, and campaign spots will air before and after episodes of Daniel Tiger’s Neighborhood on PBS KIDS.
The TTPF is designed to help families and individuals prepay and lock in today’s rates for all or some future undergraduate tuition and schoolwide required fees at two- or four-year Texas public colleges or universities.
The TCSP and LS529 college savings plans allow families to work toward building college savings by investing in one or more professionally managed portfolios, either by enrolling in TCSP directly or in LS529 through a financial advisor. In addition to paying for higher education costs, TCSP and LS529 can now be used to pay K-12 tuition expenses.
The Texas Prepaid Higher Education Tuition Board administers all three 529 plans through the Comptroller’s office. To lock in undergraduate tuition and schoolwide required fees at 2018-19 prices, TTPF enrollment for children less than 1 year old is available through July 31; for 2019-20 prices, open enrollment begins Sept. 1. Texas residency requirements apply. The TCSP and LS529 plans are open for enrollment year-round.
See the official rules for more details about the tuition units giveaway.
Texas Tuition Promise Fund® purchasers should carefully consider the risks, administrative fees, service and other charges and expenses associated with the contracts, including plan termination and decreased transfer or refund value. Purchasers should read the Texas Tuition Promise Fund Plan Description and Master Agreement carefully before purchasing a contract. Neither a contract nor any return paid with a refund is insured or guaranteed.
Before investing in the direct-sold Texas College Savings Plan® or the advisor-sold LoneStar 529 Plan®, investors should carefully consider the investment objectives, risks, administrative fees, service and other charges and expenses associated with municipal fund securities. Investors should read each Plan Description and Savings Trust Agreement carefully before investing. No part of an account, the principal invested, nor any investment return is insured or guaranteed.
As stated in the current Plan Description and Savings Trust Agreement for the Texas College Savings Plan, total fees for the Texas College Savings Plan portfolios ranged from 0.60% to 1.00%. As stated in the current Plan Description and Savings Trust Agreement for the LoneStar 529 Plan, total fees for the LoneStar 529 Plan portfolios ranged from 0.68% to 2.47% with a maximum sales charge of 5.75%. Fees are subject to change.