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529 PLANS

Tennessee's BEST Prepaid College Tuition Plan

Tennessee

Tennessee's BEST Prepaid College Tuition Plan was closed to new enrollments on November 22, 2010.

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)

General

Program type:

Prepaid unit / guaranteed savings

How to enroll:

Closed to new enrollment as of November 22, 2010.

Initial year of operation:

1997

State agency(ies):

Treasury Department and State Treasurer

Enrollment period:

Closed to new enrollment as of November 22, 2010.

Eligibility

State residency requirements:

The account owner or beneficiary must be a Tennessee resident at the time of program enrollment.

Who can be a participant/owner in the program?

Individuals (including minors with the signature of a parent or legal guardian), UGMA/UTMA custodians, and legal entities.

Significant time or age restrictions imposed by the program:

The first payout date must be at least two calendar years after the beneficiary is enrolled in the program and not before the beneficiary has been accepted for enrollment in an institution of higher education. Any subsequent deposit must have been on the beneficiary's account for at least two years before the funds may be paid out.

Contributions

Maximum contributions:

Accepts contributions until all account balances in Tennessee's 529 plan for the same beneficiary reach $235,000.

Minimum contributions:

With lump-sum contributions, the minimum initial contribution is one unit, and subsequent contributions can be any amount. With automatic investments from a bank account, the minimum contribution level is $25.

Contractual Features

Current value of one unit:

$81.11 from August 1, 2013 until July 31, 2014

Current unit price:

Not accepting contributions or new enrollments as of November 22, 2010.

Are program benefits backed by the full faith and credit of the state?

No

Are program benefits collateralized or guaranteed in any other way?

No

Fees & Expenses

Enrollment or application fee:

None.

Taxes and other Benefits

Program match on contributions:

Premium subscription required for this data.

State tax deduction or credit for contributions:

Not applicable. Tennessee does not have a personal income tax.

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

Does the program have a formal agreement with a rewards program or outside scholarship program?

No

Statutory protection of an account from creditors:

Premium subscription required for this data.

Distributions & Terminations

To whom are distributions made payable:

The purchaser, beneficiary or the institution of higher education

Account Changes

Policy regarding participant/owner changes:

Participant/owner may not be changed.

Documents, Access & Reporting

Does participant have online password-protected access to account?

No

Can the complete enrollment process including funding be done online?

No

Contact

Web site:

Click here to visit

Telephone:

1-888-486-2378

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