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TNStars College Savings 529 Program
The TNStars College Savings 529 Program is administered by the Tennessee Treasury Department. It features an age-based option, individual investment options with underlying funds from a range of fund companies including Vanguard, DFA, Primecap, and Great-West, and an interest bearing account option with First Tennessee Bank.
In Savingforcollege.com's latest quarterly rankings, this plan ranked in the top 10 for 1-year, 3-year, 5-year and/or 10-year performance.
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)
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. If there is no tax break offered for in-state investors ... shop around!
Also, 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.
Enroll directly with the program.
State of Tennessee Treasury Department and the Baccalaureate Education System Trust Board of Trustees
State of Tennessee Treasury Department
U.S. citizens and legal residents at least 18 years old, UGMA/UTMA custodians, and legal entities.
Any contribution made to an account must be on the account for 21 days before it can be withdrawn.
$235,000 including all accounts in the program and any accounts in Tennessee's BEST Prepaid Program held for the same beneficiary
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.
An age-based option offers five age bands. Contributions are placed into the portfolio corresponding to the beneficiary's age and automatically shift to a more conservative portfolio over time.
Select among 14 individual options investing in Vanguard, DFA, or Primecap funds, or an interest bearing account option with First Tennessee Bank National Association.
Vanguard and DFA in the age-based option; Vanguard, DFA, and Primecap in the individual options
Click here to visit, link to the program website containing most current performance data.
Fees & Expenses
0.00% - 0.30%
Ranges from 0.07% to 0.23% in the age-based option; 0.05% to 0.63% in the individual options.
Capped at 0.35% due to state subsidy, none for the interest bearing account.
Taxes and other Benefits
Under the Tennessee Investments Preparing Scholars Program, eligible families can receive a matching contribution of $100 for a minimum $25 investment, or $500 for a minimum $125 investment. Families can reapply each year, up to a $1,500 maximum benefit per child.
Not applicable. Tennessee does not have a personal income tax.
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 participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?
Under Tennessee law, assets in a Tennessee or non-Tennessee 529 plan or other education savings plan are exempt from execution, attachment, garnishment, the operation of bankruptcy, the insolvency laws or other process whatsoever, and any assignment thereof shall not be enforceable in any court.
Distributions & Terminations
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.
No provision for permitting an account owner change.
Documents, Access & Reporting