Texas 529 Plan for Employers

THE TEXAS 529 COLLEGE SAVINGS PLANS

Help your employees
do more than save.
Help them plan
for the future.

Many of your employees may be putting money away for college these days using a taxable option, such as a savings account or CD. The Texas College Savings Plan, an IRC Sec. 529 college savings plan, and the Texas Tuition Promise Fund, an IRC Sec. 529 prepaid tuition plan, are tax-advantaged plans to save for college. This chart from the J.P. Morgan guide on College Planning Essentials shows the potential advantages of saving in a tax-advantaged 529 college savings plan, such as the Texas College Savings Plan, over a taxable investment option.

*J.P. Morgan Asset Management. Illustration assumes an initial $10,000 contribution and monthly contributions of $500 for 18 years. Chart also assumes an annual investment return of 6% and an annual cash return of 1%, both compounded monthly. Investment losses could affect the relative tax-deferred investing advantage. This hypothetical illustration is not indicative of any specific investment and does not reflect the impact of fees or expenses. Each investor should consider his or her current and anticipated investment horizon and income tax bracket when making an investment decision, as the illustration may not reflect these factors. These figures do not reflect any management fees or expenses that would be paid by a 529 plan participant. Such costs would lower performance. This chart is shown for illustrative purposes only. Past performance is no guarantee of future results.

Open year round

No Texas residency requirement

Easy online enrollment

Your employees can use this to pay the cost of future undergraduate and graduate college tuition and fees at Texas and out-of-state colleges and universities, medical and dental schools, career schools and registered apprenticeship programs, as well as other qualified education expenses.

Learn More

Open September through February*

Texas residency requirement

Easy online enrollment

Your employees can lock in today's prices for tomorrow's undergraduate resident tuition and schoolwide required fees at Texas public colleges and universities, excluding medical and dental institutions.

*Extends through July for children younger than 1 year of age

Learn More

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

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Orion & Glenn Hegar Texas Comptroller of Public Accounts

The Texas Tuition Promise Fund® (“Fund”) and the Texas College Savings Plan® (“Plan,” together with the Fund, the “Plans”) are administered by the Texas Prepaid Higher Education Tuition Board (“Board”). Orion Advisor Solutions, Inc. (”Orion”) is the manager for the Plans. The Plan is distributed by Northern Lights Distributors, LLC and maintained by Gemini Fund Services, LLC, neither of which are affiliated with Orion. The Plans and the Board do not provide legal, financial, or tax advice and you should consult a legal, financial, or tax advisor before participating.

Non-residents of Texas should consider whether their home state, or the beneficiary’s home state, offers its residents any tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for participants in that state’s plan.

Texas Tuition Promise Fund

Participation in the Fund does not guarantee admission to or graduation from any college or university. Only the purchaser may direct redemptions, withdrawals, changes in beneficiary, or other contract changes.

You may lose money by participating in the Fund. No part of a contract is a deposit or obligation of, or is guaranteed or insured by, the Board, the state of Texas, or any agency or agent thereof. The contracts have not been registered with or approved by the SEC or any state. Purchasers should carefully consider the risks, fees, charges, and expenses associated with contracts, including Fund termination and reduced Transfer or Refund Value. Transfer Value applies to redemptions at Texas private colleges and universities, out-of-state colleges and universities, medical and dental schools, career schools, and registered apprenticeship programs and is the lesser of: (1) the costs the units would cover at a Texas public college or university; or (2) the original purchase price of the units plus or minus the Fund’s net investment earnings or losses on that amount. The Plan Description and Master Agreement contain this and other information about the Fund and may be obtained by visiting TexasTuitionPromiseFund.com or calling 800-445-GRAD (4723), option 5. Purchasers should read the Plan Description and Master Agreement, and all other Fund documents carefully before purchasing a contract.

Texas College Savings Plan

Estimated total asset-based fees are available on the Allocation Worksheet and are published in the Plan Description and Savings Trust Agreement, which is reviewed annually. Fees are subject to change.

An account could lose money including the principal invested. No part of an account is a deposit or obligation of, or is guaranteed or insured by, the Board, the state of Texas, or any agency or agent thereof. Interests in the Plan have not been registered with or approved by the SEC or any state. Investors should carefully consider the investment objectives, risks, fees, charges, and expenses associated with municipal fund securities. The Board may suspend, modify, or terminate the Plan or change investment approaches, offerings, and/or underlying investment funds at any time and without the consent of account owners or beneficiaries. The Plan Description and Savings Trust Agreement contain this and other important information about the Plan and may be obtained by visiting TexasCollegeSavings.com or calling 800-445-GRAD (4723), option 3. Investors should read the Plan Description and Savings Trust Agreement, and all other Plan documents carefully before investing.

© 2023 Texas Prepaid Higher Education Tuition Board. “Texas Tuition Promise Fund” and “Texas College Savings Plan” are registered service marks of the Texas Prepaid Higher Education Tuition Board. All rights reserved. The Plan is distributed by Northern Lights Distributors, LLC, Member FINRA, SIPC, 4221 N 203rd St, Suite 100, Elkhorn NE 68022.

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