General InformationDownload PDF Report
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.
- Program typeSavings
- Inception2002, but substantially changed in November 2007. NorthStar replaced Oppenheimer as plan manager in September 2014.
- State agencyTexas Prepaid Higher Education Tuition Board
- Program ManagerNorthStar Financial Services Group, LLC
- Program distributorNorthern Lights Distributors, LLC
- Manager contract termUNLOCK PRO
Ratings & Rankings
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.
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.
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
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.
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:UNLOCK PRO
Portfolio Fees & Performance LookupUNLOCK PRO
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
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 expensesThe 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?No
Statutory protection of an account from creditors:UNLOCK PRO
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Alternative 529 Plans
The Maine NextGen College Investing Plan -- Client Direct Series is available through Merrill Edge. The plan utilizes BlackRock (including iShares) funds in its age-based and static options. In addition, the Principal Plus Portfolio and the NextGen Savings Portfolio are available.
Why we like this plan
- Strong long-term performance
- Low fees
- Matching Grants for qualifying accounts