With an initial contribution of $25 or more and make subsequent contributions of $25 or more at any time. Is opened, you can review and manage the account online, including making changes to investment options twice per calendar year, and handling other routine tasks such as change of address or making contributions and withdrawals. Either way, starting today is a good option. The Texas College Savings Plan ® enrollment form used to collect eligibility information and establish an Account. You can enroll online or send in an enrollment The Texas College Savings Plan, which is a 529 plan. Any individual may be the Beneficiary of an Account, including the Account Owner.A government entity or 501(c)(3) not-for-profit organization can establish an Account to fund scholarship programs without designating a Beneficiary at the time the Account is established. The individual identified by the Account Owner whose Qualified Higher Education Expenses are expected to be paid from the Account or, for Accounts owned by a state or local government or qualifying tax-exempt organization (otherwise known as a 501(c)(3) entity) as part of its operation of a scholarship program, the recipient of a scholarship whose Qualified Higher Education Expenses are expected to be paid from the Account. Open a Texas College Savings Plan account with as little as $25 and contribute up to $500,000 per Low Investment Minimums and High Maximums No matter what your loved one aspires to be, the Texas College Savings Plan can help you save and plan for their higher education. Accounts are part of the Plan and are held in the name of the Plan on behalf of and for the benefit of the Account Owners and the Beneficiaries.Ĭan also be established by a corporation, partnership or trust a state or local government, or tax-exempt organization described in Section 501(c)(3) of the Internal Revenue Code or a custodian under a UGMA/ UTMA account. citizens or permanent resident aliens 18 years of age or older with a valid social security number, regardless of income or state of residence, can participate in the Texas College Savings Plan.Ī savings trust account established by an Account Owner pursuant to the Savings Trust Agreement for purposes of investing in one or more portfolios. You should consider consulting with a tax or legal advisor to determine any such consequences.Īll U.S. The tax consequences of using 529 Plans for elementary or secondary education tuition expenses will vary depending on state law and may include recapture of tax deductions received from the original state as well as penalties. Additionally, 529 Plans may be used for K-12 tuition for private, public, or religious school (up to $10,000 per year per Beneficiary). Qualifying expenses also include fees, books, supplies, and equipment necessary to participate in a registered apprenticeship program, and up to $10,000 (lifetime per student) can be used to repay student loans for the Beneficiary or the Beneficiary's sibling. The term also includes reasonable room and board for beneficiaries who are enrolled at least half-time at an Eligible Educational Institution. Expenses for special needs services incurred in connection with enrollment or attendance at an Eligible Educational Institution are also included in the definition. The term includes computers and peripherals, software (except for non-educational sports, games, or hobby software), and internet service if used primarily by the Beneficiary while enrolled at an Eligible Educational Institution. Undergraduate and graduate tuition, fees, books, supplies, and equipment required for a Beneficiary's enrollment or attendance at an Eligible Educational Institution. Qualified higher education expenses Close X Qualified Higher Education Expenses: 529 plans are specifically designed to help families - regardless of income level - save for college by offering the potential for tax-free growth and withdrawals if used for To encourage families to save for college. The Internal Revenue Code of 1986, as amended. Section 529 of the Internal Revenue Code specifies the requirements for qualified tuition programs (529 Plans). State-sponsored 529 plans are tax-advantaged college savings plans authorized by (Unqualified withdrawals may be taxable as ordinary income and subject to a 10% federal tax penalty.) The Pension Protection Act of 2006 made the tax-free character of 529s a permanent part of federal law. Earnings on 529 plans are tax-free if used for qualified higher education expenses. It is named after Section 529 of the internal revenue code, which authorized these types of tax-advantaged savings plans in 1996. A 529 plan is an education savings plan operated by a state or an educational institution and designed to help families set aside funds for college.
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