March 10, 2022

Texas Comptroller’s Office Announces Reduction in Some Fees, Changes to the Advisor-Sold LoneStar 529 Plan

(AUSTIN) — Comptroller Glenn Hegar announced today that the state’s tax-advantaged, advisor-sold college savings plan, the LoneStar 529 Plan^®, implemented the following enhancements – including a reduction in some fees – that were effective March 7:

• Reduction in the front-end sales charge for Class A shares from 5.75% to 2.75%; 
• Reduction in total plan level fees, including the program management fee, the state administrative fee and the estimated underlying investment expenses;
• A change from Age-Based Portfolios to Target Enrollment Year Portfolios to allow more flexibility for investors to select a portfolio based on when they plan to use the account and their risk tolerance; and
• Introduction of a new Registered Investment Advisor (RIA) share class with no sales charges or asset-based distribution/service fees. (Fees may be assessed separately by the financial advisor.)

More detailed information about the changes to the Plan can be found in the Transition Guide and updated Plan Description and Savings Trust Agreement available on our website at LoneStar529.com.

The LoneStar 529 Plan is administered by the Texas Prepaid Higher Education Tuition Board, with assistance from the Comptroller’s office. 

Individuals can enroll in the Plan through their financial advisor. LoneStar 529 Plan account withdrawals, including any earnings, are not subject to federal income tax if used for qualified education expenses. 

For more information on the Plan, including investment options, fees and opening an account, call 844-445-4733, Option #4 or visit LoneStar529.com. 

The LoneStar 529 Plan® (“Plan”) is administered by the Texas Prepaid Higher Education Tuition Board (“Board”). Orion Advisor Solutions, Inc. is the plan manager. The Plan and the Board do not provide legal, financial, or tax advice, and participants in the Plan should consult a legal, financial, or tax advisor before investing. Fees and charges for the most recent quarter are available on our website at www.lonestar529.com/expenses.

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.

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 Plan 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 Plan or change investment approaches, offerings, and/or underlying investment funds at any time and without the consent of account owners or beneficiaries. The Plan Description and Savings Trust Agreement contain this and other important information about the Plan and may be obtained by visiting www.lonestar529.com or calling 800-445-GRAD (4723), option #4. Investors should read all Plan documents carefully before investing.

© 2022 Texas Prepaid Higher Education Tuition Board. ‘‘LoneStar 529 Plan®’’ is a registered service mark of the Texas Prepaid Higher Education Tuition Board and distributed by Northern Lights Distributors, LLC, Member FINRA, SIPC. 4221 N 203rd St, Suite 100, Elkhorn, NE 68022. All rights reserved.

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