Texas Insider Report: AUSTIN, Texas – As national 529 industry professionals prepare to celebrate 529 College Savings Day on May 29, Texas Comptroller Glenn Hegar is encouraging families to save for their children’s higher education expenses using the state’s 529 college plans.
“529 day is a reminder that it’s never too late – or too early – to start planning for a child’s college education,” Hegar said. “Families will find that when it comes to planning for their children’s future education, every little bit adds up. One way to get a head start is by opening a new 529 plan or contributing to an existing one.”
Texas offers three tax-advantaged 529 plans: the Texas College Savings Plan® (TCSP) and the LoneStar 529 Plan® (LS529), both college savings plans, and the Texas Tuition Promise Fund® (TTPF), a prepaid tuition plan. The plans are known as 529 plans because they are authorized by Internal Revenue Code Section 529.
In commemoration of 529 College Savings Day, the Comptroller’s office is offering a special webinar on May 26 at 1 p.m. Central Time to provide information about the TCSP and LS529 college savings plans.
The TCSP and LS529 allow families to work toward building college savings by investing in one or more portfolios, either by enrolling in TCSP directly or in LS529 through a financial advisor. In addition to paying for higher education costs at schools nationwide, TCSP and LS529 can be used to pay up to $10,000 per year of K-12 tuition expenses. Age-based portfolios are designed for college savers, and account owners should discuss with their advisors whether paying for K-12 tuition expenses is appropriate for their situation. The plans are open for enrollment year-round.
The TTPF is designed to help families and individuals prepay and lock in today’s rates for all or some future undergraduate resident tuition and schoolwide required fees at any two- or four-year Texas public college or university, excluding medical and dental institutions. TTPF newborn enrollment is available through July 31 to lock in 2020-21 prices for children younger than 1 year of age; open enrollment begins Sept. 1 to lock in 2021-22 prices. Texas residency requirements apply.
The Texas Prepaid Higher Education Tuition Board administers all three 529 plans through the Comptroller’s office.