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Connecticut Higher Education Trust (CHET) -- Advisor Plan logo

Connecticut Higher Education Trust (CHET) -- Advisor Plan

The Connecticut Higher Education Trust (CHET) Advisor Plan is managed by Hartford Funds and features age-based, static, and individual portfolio options. Underlying investments include Hartford Funds mutual funds, two iShares (BlackRock) mutual funds, and a stable value portfolio managed by Invesco. To find a financial advisor in your area, use the Directory of Financial Professionals.

Our Ratingx

Fee Scorex

3.5 of 5

Performancex

N/A

  • Program typeSavings
  • Inception2010
  • State agency
    Connecticut State Treasurer
  • Tax deduction
    Tax deduction for single filers $5,000/yr
    Tax deduction for joint filers $10,000/yr
  • Program Manager
    Hartford Funds Management Company, LLC.
  • Program distributor
    Hartford Funds Distributors, LLC
  • Manager contract termUNLOCK PRO

Ratings & Rankings

Our overall rating for CT residents

This is a very good program that offers valuable benefits but may have some limitations or concerns that investors need to know.

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.


1.90of 5
top-ten

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?

U.S. citizens and resident aliens, UGMA/UTMA custodians, and legal entities.

Significant time or age restrictions imposed by the program:

None

Contributions

Maximum contributions:

Accepts contributions until all account balances in Connecticut's 529 plan for the same beneficiary reach $300,000.

Minimum contributions:

The minimum initial contribution for payments via check is $50, with additional investments of at least $25 per Account; For initial contributions made via electronic transfers or Payroll Direct Deposit or through the Automatic Investment Program, the minimum initial and subsequent contributions are $25 per Account.

Investment Options

Age-based investment options:

One age-based option containing 9 portfolios of underlying 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 options

Static investment options:

5 options are offered: Aggressive Growth, Growth, Balanced, Conservative, and Checks and Balances. Additionally, 12 individual fund options are offered including a Stable Value portfolio.View more static investment options

Underlying investments:

Hartford Funds mutual funds, two iShares (BlackRock) mutual funds, and an Invesco Stable Value portfolioView a full list of this plan's investment options

Underlying fund allocations:

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Portfolio Fees & Performance Lookup

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Fees & Expenses

Enrollment or application fee:

None.

Account maintenance fee:

None.

Program management fees:

0.16% manager fee and a 0.01% fee to the state, plus distribution/servicing fees of 0.25% (Class A); 1.00% (Class C); None (Class E)

Expenses of the underlying investments:

Ranges from 0.35% to 0.63% (portfolio weighted average) in aged based and static multi-funds portfolios, and from 0.23% to 0.77% in the individual fund portfolios.

Total asset-based expense ratio:

Class A: 0.65%-1.19%
Class C: 1.40%-1.94%
Class E: 0.40%-0.94%

Broker loads and commissions:

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Breakpoint pricing:

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Does breakpoint pricing include non-529 assets under rights of accumulation policies

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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. Contribution deadline is December 31 postmark if by mail, or final business day of the year if by electronic payment.

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?

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?

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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Distributions & Terminations

To whom are distributions made payable:

Eligible educational institution or account owner, as directed by the account owner.

Account Changes

Policy regarding participant/owner changes:

Accepts requests to transfer account ownership.

Documents, Access & Reporting

Does participant have online password-protected access to account?

Yes

Can the complete enrollment process including funding be done online?

No

Documents and other services accessible or downloadable on the program's public Web site:

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Contact

Website:

https://www.hartfordfunds.com/products/college-savings/chet-advisor.html

Telephone:

1-877-407-2828

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