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Lonestar 529 Plan

The program management of Texas' Lonestar 529 Plan was assumed by NorthStar Financial Services Group, LLC in September 2014. The plan offers an age-based option, two multi-fund portfolios, and 10 individual fund portfolios. To find a financial advisor in your area, use the Directory of Financial Professionals.

Our Ratingx

3 of 5

Fee Scorex

2 of 5

Performancex

1.5 of 5

  • Program typeSavings
  • Inception2002, but substantially changed in November 2007. NorthStar replaced Oppenheimer as program manager in September 2014.
  • State agency
    Texas Prepaid Higher Education Tuition Board
  • Tax deduction
    Tax deduction for single filers None
    Tax deduction for joint filers None
  • Program Manager
    NorthStar Financial Services Group, LLC
  • Program distributor
    Northern Lights Distributors, LLC.
  • Manager contract termUNLOCK PRO

Ratings & Rankings

Our overall rating for TX 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 is a very good program that offers valuable benefits but may have some limitations or concerns that investors need to know.

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.


2.28of 5

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:

None

Who can be a participant/owner in the program?

Individuals, 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 Texas' 529 plans for the same beneficiary reach $370,000.

Minimum contributions:

$25 per portfolio, or $15 per portfolio with the automatic contribution plan.

Investment Options

Age-based investment options:

The Age-Based Portfolios option consists of 6 portfolios of underlying funds. Contributions are placed into the portfolio that corresponds to the age of the beneficiary. The portfolios automatically shift to a more conservative investment allocation over time.View more age-based investment options

Static investment options:

Select among 2 multi-fund portfolios (the 100% Equity portfolio and the Balanced portfolio) and 10 individual-fund portfolios.View more static investment options

Underlying investments:

Mutual funds managed by Artisan, DFA, Dodge & Cox, Dreyfus, Invesco, T. Rowe Price, Templeton, Thornburg, TIAA-CREF, and William Blair.View 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, but contributions may be subject to a sales charge depending on share class.

Account maintenance fee:

None.

Program management fees:

0.5350% management fee (including 0.0843% state fee) for all portfolios. Additional distribution/servicing fees of 0.25% (Class A) or 1.00% (Classes B and Advisor class). The U.S. Government Money Market Portfolio has no distribution/servicing fees.

Expenses of the underlying investments:

Ranges from 0.1553% to 0.5933% in the age-based and static multi-fund portfolios, and 0.04% to 0.86% in the individual-fund portfolios.

Total asset-based expense ratio:

Class A: 0.6593% - 1.7293%
Class B: 0.6593% - 2.4793%
Advisor Class: 0.6593% - 2.4793%

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 filersNone
  • Tax deduction for joint filersNone

Note

Texas doesn't offer tax deductions

Program match on contributions:

None.

State tax deduction or credit for contributions:

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

State definition of qualified expenses

The state conforms with the federal definition of qualified education expenses, which includes expenses for higher education, as well as up to $10,000 per year in tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school.

State tax treatment of qualified distributions:

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

Does the sponsoring state exclude the value of an account for state financial aid purposes?

Yes

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, beneficiary, 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:

http://www.lonestar529.com

Telephone:

1-800-445-4723, option 4

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