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TNStars College Savings 529 Program
Tennessee
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 Maxim, and an interest bearing account option with First Tennessee Bank.
5-Cap Rating
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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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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. 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.
Program type:
Savings
Telephone:
855-386-7827
Web site:
How to enroll:
Enroll directly with the program.
Initial year of operation:
2012
State agency(ies):
State of Tennessee Treasury Department and the Baccalaureate Education System Trust Board of Trustees
Program manager:
State of Tennessee Treasury Department
Program distributor:
Not applicable.
Manager contract term:
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Any contribution made to an account must be on the account for 60 days before it can be withdrawn. Withdrawal requests can take up to 60 days to process.
Contributions
Maximum contributions:
$235,000 including all accounts in the program and any accounts in Tennessee's BEST Prepaid 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.
Investment Options
Age-based investment options:
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.
Static investment options:
Select among 13 individual options investing in Vanguard, DFA, Maxim or Primecap funds, or an interest bearing account option with First Tennessee Bank National Association.
Underlying investments:
Vanguard and DFA in the age-based option; Vanguard, DFA, Maxim, and Primecap in the individual options
Underlying fund allocations:
Premium subscription required for this data.
Investment performance link:
Premium subscription required for this data.
Portfolio Fees & Performance Lookup
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Fees & Expenses
Enrollment or application fee:
None
Account maintenance fee:
None
Program management fees:
0.00% - 0.30%
Expenses of the underlying investments:
Ranges from 0.10% to 0.26% in the age-based option; 0.05% to 0.68% in the individual options.
Total asset-based expense ratio:
0.35%, none for the interest bearing account. For fiscal year 2012-2013 (July 1, 2012- June 30, 2013), the program is subsidizing fees and expenses for any fund above 0.35% total annual asset based fee.
Taxes and other Benefits
Program match on contributions:
Account owners who are Tennessee residents receive $50 deposited into a new account and $100 with a rollover of an entire account balance from an existing college savings plan, including other 529 plans and the BEST Prepaid Plan.
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. 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:
Premium subscription required for this data.
State News
- Tennessee announces new college savings plan (09/18/2012)
- Georgia 529 to terminate partnership with Tennessee (01/10/2011)
- Tennessee Department of Treasury will soon offer matching funds (11/22/2010)
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