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Connecticut Higher Education Trust (CHET)
Similar to other TIAA-managed 529 savings programs, the Connecticut Higher Education Trust (CHET) features three age-based options along with eight static investment options.
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)
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Access enrollment materials and open an account with Connecticut Higher Education Trust (CHET) in just a few easy steps.Enroll Now
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.
Connecticut State Treasurer
TIAA-CREF Tuition Financing, Inc.
TIAA-CREF Individual & Institutional Services, LLC
Through March 12, 2020.
Any U.S. citizen or resident alien with a valid Social Security number or taxpayer identification number.
Accepts contributions until all account balances in Connecticut's 529 plan for the same beneficiary reach $300,000.
$25, or $15 per pay period via payroll deduction.
Three age-based options, the Moderate Managed Allocation Option, Conservative Managed Allocation Option and the Aggressive Managed Allocation Option, are offered, each containing 6 portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the beneficiary's age and later reassigned to more conservative portfolios as the beneficiary approaches college age.
Four static blend and five individual options are offered plus the Principal Plus Interest Option, and the Money Market Option.
TIAA-CREF institutional mutual funds and funds from seven outside mutual fund families, BlackRock, Harding Loevner, GMO, DFA, GE, MetWest, T Rowe Price, & Franklin Templeton. The Principal Plus Interest Option is invested in a funding agreement with TIAA-CREF Life Insurance Company that guarantees principal and a minimum annual rate of interest (actual rate is declared annually).
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Click here to visit, link to the program website containing most current performance data.
Fees & Expenses
0.15% manager fee and a 0.01% fee to the state. None for the Principal Plus Interest option; currently waived for the Money Market Option.
Ranges from 0.15% to 0.38% for the age-based options, and from 0.08% to 0.91% for static options. None for the Principal Plus Interest option.
0.21% - 1.07%; 0.13% for the Money Market option with waiver. None for Principal Plus Interest Option.
Taxes and other Benefits
Connecticut will provide $100 to families that open a 529 college savings account by their child's first birthday or within the first year after an adoption. Families that save an additional $150 in the first four years will receive a state match of $150, for a total of $250 in state funds.
Contributions to a Connecticut 529 plan of up to $5,000 per year by an individual, and up to $10,000 per year by a married couple filing jointly, are deductible in computing Connecticut taxable income, with a five-year carryforward of excess contributions. Rollover contributions are not deductible. Contribution deadline is December 31 postmark if by mail, or final business day of the year if by electronic payment.
Investment time horizon:
18 yrs (i.e. newborn): 0.29% annualized
10 yrs (i.e. 8-yr old): 0.52% annualized
2 yrs (i.e. 16-yr old): 2.63% annualized
Based on 6.7% CT tax rate. (For assumptions see 529 State Tax Calculator.)
Qualified distributions from Connecticut and non-Connecticut 529 plans are exempt. Nonqualified distributions from Connecticut 529 plans made to the account beneficiary are also exempt (i.e. income reported for federal purposes may be subtracted on the CT tax return).
Connecticut follows federal tax-free treatment.
Does participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?
Distributions & Terminations
Eligible educational institution or account owner, as directed by the account owner.
Accepts requests to transfer account ownership.
Documents, Access & Reporting
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