The Texas 529 Plans help employers make a difference and help families save for college.

As an employer, you can demonstrate your commitment to your employees’ financial wellness and future by providing a benefit package that helps meet their families’ needs.

The Texas 529 Plans are tax-advantaged college savings plans authorized by Internal Revenue Code, Sec. 529, established by the Texas Legislature, and administered by the Texas Prepaid Higher Education Tuition Board with assistance from the Texas Comptroller of Public Accounts.

Open September
through February^{footnote 1}

Texas residency
requirement

Easy online
enrollment

The Texas Tuition Promise Fund® allows a purchaser to lock in the cost of future undergraduate resident tuition and schoolwide required fees at Texas public colleges and universities at today’s prices. If a beneficiary attends a Texas private college or university, out-of-state college or university, medical or dental school, career school or registered apprenticeship program, where the tuition and required fees are not locked in, the purchaser can apply the Transfer Value^{footnote 2} towards the cost of tuition and schoolwide required fees. The plan offers flexible payment options that fit almost any budget. More information about the plan is available at TexasTuitionPromiseFund.com.

Extends through July for children younger than 1 year of age.
Transfer Value is limited to the lesser of: (1) the costs the tuition unit would cover at a Texas public college or university; or (2) the original purchase price of the tuition unit, plus or minus the plan’s net investment earnings or losses on that amount.

Open year round

No Texas residency
requirement

Easy online
enrollment

The Texas College Savings Plan® can be used to pay the cost of future undergraduate and graduate school tuition, fees and other qualified education expenses at Texas and out-of-state colleges and universities, medical and dental schools, career schools and registered apprenticeship programs. More information about the plan is available at TexasCollegeSavings.com.

Benefits of Tax-Free Growth

chart — This hypothetical illustration assumes an initial investment of $10,000 in the Texas College Savings Plan and a 5 percent annual rate of return. The taxable account assumes a 28 percent federal tax rate. The illustration does not represent the performance of any specific account or investment and does not reflect any plan fees or sales charges that may apply. If such fees or sales charges had been considered, returns would have been lower.

Do you work with a financial advisor? Ask them about the LoneStar 529 Plan, our advisor-sold college savings plan.

Good For Your
Employees

“86 percent of parents surveyed say children will need continued education or additional skills throughout their lives; 83 percent of those parents plan to help fund that education.”

Source — College Savings Foundation’s 2022 Survey of Parents

Good For Your
Company

MetLife’s 16th Annual US Employee Benefit Trends Study 2018 reports that employees can be distracted by their personal finances, and funding education is top of mind for many. This research finds that, by adding benefit options like 529 college savings plans, employers can increase overall employee satisfaction and retention while helping to reduce anxiety around financial wellbeing.

You can make a difference in the lives of your employees by helping them save for their children’s or grandchildren’s future education. You can be a leader as a company that recognizes and prioritizes the needs of your employees and their families and helps foster the educated workforce necessary for the future economic growth of Texas and your company.

Here are a few ways we can help:

Produce and distribute informational materials
Conduct webinars
Make in-person or virtual presentations
Provide articles for your employee newsletter or internal website
Host informational tables at your employee events and/or benefit fairs

Contact the Texas 529 Outreach Team to learn more about offering the Texas 529 Plans as an employee benefit.
Email TuitionPromise@cpa.texas.gov or call 800-531-5441, ext. 3-7570.

Compliance code: 1 2 3 7, NLD, Feb 16, 2023