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Texas College Savings Plan

The Texas College Savings plan, managed by NorthStar Financial Services Group, LLC offers two age-based investment options and seven static options using underlying investments managed by Artisan, DFA, Dodge & Cox, Dreyfus, Invesco, T. Rowe Price, TIAA-CREF, and Vanguard.

Our Ratingx

3.5 of 5

Fee Scorex

2.5 of 5

Performancex

1 of 5

  • Program typeSavings
  • Inception2002, but substantially changed in November 2007. NorthStar replaced Oppenheimer as plan 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.


2.75of 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

Did you know?

  • 529 plan contributions grow tax-free.

    Withdrawals are tax-free when used to pay for qualified higher education expenses.

  • You can contribute as much as you want, as often as you want.

    The key is to get started. Enroll today by completing a quick form online.

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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:

Select either the Blended Age-based Portfolios, which offers underlying investments that are both actively and passively managed, or the Index Age-Based Portfolios, which offers passively managed investments. Each option consists of 6 portfolios of underlying investments. 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 4 multi-fund portfolios (two of which use only index funds), 2 individual-fund bond portfolios, and the U.S. Government Money Market Portfolio.View more static investment options

Underlying investments:

Mutual funds and investment strategies managed by Artisan, DFA, Dodge & Cox, Dreyfus, Invesco, T. Rowe Price, TIAA-CREF, and Vanguard.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.

Account maintenance fee:

None.

Program management fees:

0.535% manager fee (plus 0.0843% state administrative fee); no administrative fee for index portfolios.

Expenses of the underlying investments:

0.0547% to 0.0712% in the Index portfolios; 0.0941% to 0.3694% in the Blended Portfolios; and 0.04% to 0.12% in the Individual Fund Portfolios.

Total asset-based expense ratio:

0.5897% - 0.9887%

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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Did you know?

  • Residents are not limited to investing in their own state's 529 plan.

    Another state may offer a plan that performs better and has lower fees.

  • The 529 plan chosen does not affect which state the student enrolls in.

    You can live in New York, open a plan from Nevada and send a student to college in Florida.

  • The best way to maximize your college savings?

    Start early and save often. You can get started today with easy online enrollment.

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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?

Yes

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

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Contact

Telephone:

1-800-445-4723, option 3

Start saving for your child's future today


Step 1

Click the blue Enroll Now button to the right

Step 2

Complete the online application and make your first deposit

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