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Compare 529 Plans
Plan
Texas
Summary
The program management of Texas' Lonestar 529 Plan was assumed by Orion Advisor Solutions, Inc. (previously known as NorthStar Financial Services Group, LLC) in September 2014. The plan offers an enrollment year option, three risk-based portfolios, and 20 individual asset class portfolios.
Program type
Savings
How to enroll
Enroll through a financial advisor.
Initial year of operation
2002, but substantially changed in November 2007. Orion replaced Oppenheimer as program manager in September 2014.
State agency(ies)
Texas Prepaid Higher Education Tuition Board
Program manager
Orion Advisor Solutions, Inc.
Program distributor
Northern Lights Distributors, LLC.
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 $500,000.
Minimum contributions
$25 per portfolio, or $15 per portfolio with the automatic contribution plan.
Does the program offer an e-gifting platform for receiving gift contributions?
This plan does not offer an online gifting portal allowing for easy sharing but may offer gift certificates or allow mail-in gift contributions.
Age-based/Enrollment Year investment options
The Target Enrollment Year Option consists of 10 portfolios of underlying funds. Contributions are placed into the portfolio corresponding to the beneficiary's expected year of enrollment.
Static investment options
Select among 3 risk-based portfolios and 20 individual asset class portfolios.
Underlying investments
Artisan, Baird, DFA, Dodge & Cox, Eaton Vance, Federated Hermes, Neuberger Berman, New York Life, PIMCO, T. Rowe Price, Vanguard
Are program benefits backed by the full faith and credit of the state?
No
Are program benefits collateralized or guaranteed in any other way?
No
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
0.34% management fee (including 0.06% state fee) for all portfolios. Additional distribution/servicing fees of 0.25% (Class A), none for RIA class.
Expenses of the underlying investments
Ranges from 0.19% to 0.47% in the age-based and risk-based portfolios, and 0% to 1.12% in the individual asset class portfolios.
Total asset-based expense ratio
Class A: 0.59% - 1.44%
RIA Class: 0.34% - 1.46%
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, apprenticeship programs, interest and/or principal on qualified education loans up to a $10,000 lifetime cap, and up to $10,000 per year in tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school. Distributions from a 529 account directly to a Roth IRA are considered a qualified expense.
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
Is there a rewards program or outside scholarship program that works with this 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.
To whom are distributions made payable
Eligible educational institution, beneficiary, or account owner, as directed by the account owner.
Policy regarding participant/owner changes
Accepts requests to transfer account ownership.
Does participant have online password-protected access to account?
Yes
Can the complete enrollment process including funding be done online?
No
Website
Telephone
1-800-445-4723, option 4