General InformationDownload PDF Report
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.
Our Ratingix
Fee Scoreix
Performanceix
- Program typeSavings
- Inception1997
- State agencyConnecticut State Treasurer
- Tax deductionTax deduction for single filers $5,000/yrTax deduction for joint filers $10,000/yr
- Program ManagerTIAA-CREF Tuition Financing, Inc.
- Program distributorTIAA-CREF Individual & Institutional Services, LLC
- Manager contract termUNLOCK PRO
Ratings & Rankings
Our overall rating for CT residents
This is an excellent program with many benefits for the participant and positive investment attributes. If it has any significant weaknesses then it also has some particularly good things to recommend it.
Our overall rating for non-residents
This program is not open to you either because it has residency requirements or because it has stopped accepting new enrollments.
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.
Each plan's performance score is developed directly from Savingforcollege.com's Quarterly 529 Performance Rankings. A 529 savings plan must have at least one year of performance history before they will be assigned a 5-cap rating. For those plans that are not part of our quarterly performance rankings, such as plans offering a single set of bank-based investment options, we assign a performance score by evaluating the returns currently available on similar types of investments outside of 529 plans.
Eligibility
State residency requirements:
The account owner must have a Connecticut mailing address or be a Connecticut resident on active duty in the U.S. armed forces.Who can be a participant/owner in the program?
Any U.S. citizen or resident alien with a valid Social Security number or taxpayer identification number.Significant time or age restrictions imposed by the program:
NoneContributions
Maximum contributions:
Accepts contributions until all account balances in Connecticut's 529 plan for the same beneficiary reach $300,000.Minimum contributions:
$25, or $15 per pay period via payroll deduction.Investment Options
Age-based investment options:
Three age-based options, the Moderate Managed Allocation Option, Conservative Managed Allocation Option and the Aggressive Managed Allocation Option, are offered, each containing 9 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.View more age-based investment optionsStatic investment options:
Four static blend and five individual options are offered plus the Principal Plus Interest Option, and the Money Market Option.View more static investment optionsUnderlying investments:
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).View a full list of this plan's investment optionsUnderlying fund allocations:
UNLOCK PROPortfolio Fees & Performance Lookup
UNLOCK PROFees & Expenses
Enrollment or application fee:
None.Account maintenance fee:
None.Program management fees:
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.Expenses of the underlying investments:
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.Total asset-based expense ratio:
0.21% - 1.07%; 0.13% for the Money Market option with waiver. None for Principal Plus Interest Option.Taxes and other Benefits
- Tax deduction for single filers$5,000/yr
- Tax deduction for joint filers$10,000/yr
Example
Married filing jointly residents contributing $100/month can expect an additional $0 a year in tax savings.
Program match on contributions:
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.State tax deduction or credit for contributions:
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.State tax recapture provisions:
None.State definition of qualified expenses
The state's definition of qualified education expenses currently includes expenses for attendance at an institution of higher education as defined by the Internal Revenue Code and its regulations addressing qualified state tuition programs. It is unclear or as yet undecided as to whether tuition for elementary or secondary education will be considered a qualified education expense.State tax treatment of qualified distributions:
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).State tax treatment of rollovers:
Connecticut follows federal tax-free treatment.Does the sponsoring state exclude the value of an account for state financial aid purposes?
NoDoes participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?
NoDoes the program have a formal agreement with a rewards program or outside scholarship 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.
Upromise Helps Families Save for College
Upromise Helps Families Save for College
Statutory protection of an account from creditors:
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