{{parent.cta_data.text}}
{{parent.title}}
Login
TNStars College Savings 529 Program NEW! PDF ReportPRO
Tennessee
The TNStars College Savings 529 Program is administered by the Tennessee Treasury Department. It features an age-based option and individual investment options with underlying funds from Vanguard, PrimeCap, DoubleLine, and Western Asset.
5-Cap Rating
| Resident: |  |
|---|---|
| Non-Resident: | 
|
Savingforcollege.com's 5-Cap Ratings provides an evaluation and comparison of 529 plans, utilizing a formula that examines dozens of factors grouped into the following categories. (Scale 0 to 5; 5 is highest)
| Performance | Costs | Features | Reliability | Resident Upgrade |
|---|---|---|---|---|
| 2.04 | 4.11 | 4.42 | 3.77 | 0.30 |
Start saving today
Access enrollment materials and open an account with TNStars College Savings 529 Program in just a few easy steps.
General
Did you know?
Residents are not limited to investing in their own state's plan. Another state may offer a plan that performs better and has lower fees.
The plan chosen does not affect which state the student enrolls in. An investor can live in NY, invest in a plan from NV and send a student to college in FL.
The best way to maximize your college savings? Start early and save often. You can get started today with easy online enrollment.
Program type:
Savings
How to enroll:
Enroll directly with the program.Initial year of operation:
2012
State agency(ies):
State of Tennessee Department of Treasury and the College Savings Trust Fund Program Board of Trustees
Program manager:
State of Tennessee Department of Treasury
Program distributor:
Not applicable.
Manager contract term:
PRO Premium subscription required for this data.
Eligibility
State residency requirements:
None
Who can be a participant/owner in the program?
U.S. citizens and legal residents at least 18 years old, UGMA/UTMA custodians, and legal entities.
Significant time or age restrictions imposed by the program:
Any contribution made to an account must be on the account for 21 days before it can be withdrawn.
Contributions
Maximum contributions:
$350,000 including all accounts in the program held for the same beneficiary
Minimum contributions:
The minimum initial or subsequent contribution to an account for each investment option is $25. Once an initial contribution is made to the account, there are no required subsequent contributions. There is a minimum $25 contribution to establish the account, regardless of the number of investment options selected.
Does the program offer an e-gifting platform for receiving gift contributions?
This plan offers a robust gifting platform that allows gift-givers to save their own profile for recurring or future contributions.
Investment Options
Age-based/Enrollment Year investment options:
An age-based option offers ten age bands. Contributions are placed into the portfolio corresponding to the beneficiary's age and automatically shift to a more conservative portfolio over time.
Static investment options:
Select among 15 individual options investing in Vanguard, DoubleLine, Western Asset or Primecap funds
Underlying investments:
Vanguard in the age-based option; Vanguard, DoubleLine, Western Asset and Primecap in the individual options.
Underlying fund allocations:
PRO Premium subscription required for this data.
Portfolio Fees & Performance Lookup
PRO Premium subscription required for this data.
See Investment OptionsFees & Expenses
Enrollment or application fee:
None
Account maintenance fee:
None
Program management fees:
0.20%
Expenses of the underlying investments:
Ranges from 0.044% to 0.050% in the age-based option; 0.03% to 0.65% in the individual options and money market 0.110%.
Total asset-based expense ratio:
0.23% to 0.85%
Taxes and other Benefits
Program match on contributions:
Under the Tennessee Investments Preparing Scholars Program (TIPS), eligible families can receive a matching contribution of $100 for a minimum $25 investment, or $500 for a minimum $125 investment. Beneficiaries can receive a maximum match of $500 per year with a $1,500 lifetime maximum benefit per beneficiary.
State tax deduction or credit for contributions:
Not applicable. Tennessee does not have a personal income tax.
State definition of qualified expenses
The state conforms with the federal definition of qualified education expenses, which includes expenses for higher education, apprenticeship programs, interest and/or principal on qualified education loans up to a $10,000 lifetime cap, and up to $10,000 per year in tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school. Distributions from a 529 account directly to a Roth IRA are considered a qualified expense.
State tax treatment of qualified distributions:
Not applicable. Tennessee does not have a personal income tax. Contributions to, and distributions from, Tennessee and non-Tennessee 529 plans are specifically exempt from all Tennessee state, county, and municipal taxes.
Does the sponsoring state exclude the value of an account for state financial aid purposes?
No
Does participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?
No
Is there a rewards program or outside scholarship program that works with this program?
Yes, the Upromise Rewards program can be linked to any 529 college savings plan. Upromise Rewards is free to join and offers members cash back for college.
Statutory protection of an account from creditors:
PRO Premium subscription required for this data.
Distributions & Terminations
To whom are distributions made payable:
The purchaser, beneficiary or the institution of higher education. Non-qualified withdrawals that are "refunds" or that are eligible for a waiver of the federal 10 percent penalty tax are payable to the purchaser.
Account Changes
Policy regarding participant/owner changes:
No provision for permitting an account owner change.
Documents, Access & Reporting
Does participant have online password-protected access to account?
Yes
Can the complete enrollment process including funding be done online?
Yes
Documents and other services accessible or downloadable on the program's public Web site:
PRO Premium subscription required for this data.
Open an account in just a few easy steps. Start saving today!
